The pair is currently @ 102.58. We have a clear head and shoulders pattern and a break of the neckline. Initial target is the 0.500 Fibo @ 101.70 and then it should get interesting. Wave counters will note that we are fulfilling an abc retracement after the 5th wave so how deep will the retracement go before the resumption of another move north? 2 Scenarios – 1) bounce on the .500 to the 5th wave target of the R7 @ 105.87 or 2) continue to the 0.618 Fibo before a bounce move to the same target. The Average Daily Trading Range (ATR) for the pair is 96 pips.
