The price is finally starting to bounce up nicely and a bullish exit has triggered further strength for a push-up. We remain bullish looking to buy above major support at 111.11 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, Elliott wave structure, bullish divergence) for a corrective bounce up to at least 112.53 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees major support at 34% where we expect a corresponding bounce from. We can also see bullish divergence signaling that a strong reversal is impending. A recent bullish exit from our long-term descending resistance-turned-support line also adds further strength to our move.
Correlation analysis: We're expecting JPY weakness with AUD/JPY expecting a bounce too.
Buy above 111.11. Stop loss is at 109.95. Take profit is at 112.53.
