The chart shows this weeks movement. I see at it as a potential terminal impulse and a fall below 107.62 (the end of the potential wave 4 of it) will be a first signal for the validity of this count. A further fall below 106.54 will be a confirmation and in such a case one should expect a sharp sell-off below 104.38 in 2-3 days time. With an eye on this possibility I gave a strategy to enter short on break of 107.62. However I do not dare to enter short before the 107.62 low is taken because there is also a bullish alternatives. A key resistance is 109.15

Trading strategy: 10:40 EST; 15:40 GMT

Sell on break of 107.62 (sell stop order at 107.61), stop loss - 108.20, target - open

Confidence level – medium

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.