The fall started from 1.5904 is corrective in nature and developed as a triple corrective combination which ended with a triangle. It finished at 1.5406 and a new strong rise followed. The possibilities for it are two â€“ impulsive movement for a new high above 1.5904 or corrective movement in wave B (wave A is the 1.5904 â€“ 1.5406 movement) followed by another fall in wave C. There is still no clearness what exactly is developing because none of the possibilities is ruled out. I continue to favor the corrective interpretation which suggests that 1.5904 will remain intact. My working count for it is presented on the chart and it suggests some sideways movement between 1.5858 and 1.5725 before a sharp sell-off. I will be flat at the moment because the potential triangle is not over yet but when there is a signal for its end, I will give a strategy for a short position below 1.5725. A key resistance is the high 1.5904
Trading strategy: 09:28 EST; 13:28 GMT
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.