Going higher

On the daily chart we can see that price has broken out of a bullish flag pattern. This gives a target of 1.4429, the 100% extention of the flag pole. The question at this point is whether this target level is the end of wave B ( alternative count, near the 76.4 fib extention of (W) ) or only a first part of (Y) of B ( eventual target would be the 100% fib extention of (W) at 1.5140 ).



On the hourly chart, we can see that the rally is corrective ( complex double three, abcxabc ). Since there is a bullish flag pattern on the larger timeframes, i prefer to count this as a start of a larger rally, probably a wave Y ( i've used the labels of the alternative count on the daily chart because the degree is uncertain ). Look for a retest of the flag channel in the form a wave B. Another possibility is that wave X isn't finished yet and price goes lower first, in this case the flag pattern will no longer be in play, unless it becomes a bigger flag.