Placing the finishing touches on a bounce - 1.15 key levelThe sell off from this morning has popped outside of the purple channel. Therefore, it appears to be a smaller degree wave 'x' and we are working on a wave 'y' higher. Based on wave relationships, this places a potential reaction zone in the 1.14-1.15 area.
This runs a similar pattern to the GBPUSD we wrote about last week.
Traders can place their risk above the Aug 24 high while targeting new lows below 1.08.
There is an alternate view that suggests we are in a larger degree (X) wave that likely digs deeper. A move above 1.15 will enhance this count.
Sentiment is running with net sellers going into the FOMC meeting tomorrow. Be mindful of your trade size as volatility is likely to pick up.
Good luck!
