[B]Commentary[/B]: The break below 107.20 warrants a breakout strategy. We did mention that we “favored a rally to exceed 110.11 as an expanded flat (shown as a-b-c) before the next bearish leg.” That obviously did not happen as the pair broken below 106.00 this morning. If you wish to take advantage of this bear leg that we expect to drop below 100 (objectives are near 97.50), then resistance should be strong at 107.22 and the bias is bearish as long as price is below 108.33.
[B]Strategy[/B]: Get bearish near 107.20, against 108.40, target below 100