If we take a look at the daily time frame we’ll see that the pair has started rising after breaking out above a flag (the red trendlines) that was 306 pips high and it is close to reaching its limit of 306 pips projected from the breakout level, i.e. it’s close to reaching 104.24.
And that isn’t everything. In my opinion, the move to the upside won’t end at that level, because if we examine the wave structure we’ll notice that there is an impulse move to the upside and the pair is forming Elliott waves. If my analysis is correct then we will see the third wave ending and then a fourth wave forming a correction, after which to the move to the upside should continue.
All that said, we should also not forget that the five waves in the Elliott Wave Theory do not form just by themselves. If we are witnessing the formation of five impulse waves, after a correction we should see the formation of at least five more. That would mean that the pair will rise further and as a resultmy other prognosis about this pair – that the trend is reversing>>> – will turn out to be correct.