We are currently in a very critical area with plenty of resistances, specially the black long term trendline that comes from all time high.
After hitting the first pullback target at 32.2 I was expecting a minor push from the USD followed by a further correction to 31.8 area or at least a retest of the previous bottom (32.2). Instead price broke 32.90 resistance and went straight to the red resistance trendline.
Elliott wave theory suggests that next would be 36 with the fifth and last impulse wave (5).
From the two possibilities drawn on this chart I would say that odds of breaking out the trendline now are quite high (70%).
Fundamentally speaking seems to be backing as well the USD movement after the DXY went above 93 as well.
Another possible scenario is to pullback a little bit to gain further strength and demand to create an inverted Head and Shoulder pattern to reach the next target at 36.
At this level always be very careful and make sure you trade wisely and protected, either with SL or by hedging partially or totally your positions.
After hitting the first pullback target at 32.2 I was expecting a minor push from the USD followed by a further correction to 31.8 area or at least a retest of the previous bottom (32.2). Instead price broke 32.90 resistance and went straight to the red resistance trendline.
Elliott wave theory suggests that next would be 36 with the fifth and last impulse wave (5).
From the two possibilities drawn on this chart I would say that odds of breaking out the trendline now are quite high (70%).
Fundamentally speaking seems to be backing as well the USD movement after the DXY went above 93 as well.
Another possible scenario is to pullback a little bit to gain further strength and demand to create an inverted Head and Shoulder pattern to reach the next target at 36.
At this level always be very careful and make sure you trade wisely and protected, either with SL or by hedging partially or totally your positions.