Since the confirmation of the global recession in March 2008, the pair has entered an upside wave that was considered the XA leg of a Harmonic Pattern, until this wave ended in November 2008, when the FOMC rate cuts was at its utmost; the AB was completed by the end of 2008 and the BC wave started which ended in March 2009 when equities and commodities started the rally and the dollar slumped, and the CD leg was completed in November 2009.
With the end of the downside wave that took the form of a CD leg, the pair entered a bullish direction, which is the expected direction after the end of the CD leg, and now this wave is expected to prevail and correct between 38.2% to 61.8% of the CD leg; the targets for this expected upside move reside at 1.0695 and then 1.1180, yet for the pair to acquire the second target it should consolidate above the mentioned 38.2% correction.
