The pair is moving higher, we had an important gap of more than 150 pips, the price is approaching an important resistance level at the 38.2% retracement level. The price is now just above the second warning line (WL2) and if will close above this line then the upward movement can continue further. Maybe the price will decline along the WL2 line till 1.534 zone and then will resume the bullish movement. Probably we’ll have a sideways movement until the price will gain enough energy to be able to break and close above the 38.2% level.
If my scenario will take shape and the price will break and consolidate above the resistance level (38.2%), the correction will continue, the price will try to recover after the downward movement from last year. The correction is at the end if the price will be unable to move higher in the next period. We had positive data from US this week and if the optimism will continue then the US dollar will grow again.