Wave Analysis:
EUR/USD is currently trading with a bearish bias. During the previous intraday, Euro rebounded from the resistance level 1.1323 and is currently headed short. We expect the current downward rally to be a continuation of the green wave (b) with an ultimate target along the lower supportive trend line. If the wave goes below this trend line, then we’ll have to hold onto to short positions but with an ultimate target at 1.1027. The latter is however, highly unlikely since the intraday stochastic is already trading below its oversold level of 80. Meaning, the anticipated downward rally may be short lived only up to 1.117 from where we will look to buy wave (c) and the black wave ((c)) with our target at 1.1492. Traders trading this pair should observe closely GBP/USD. For the past one week, these two pairs have had a very strong positive correlation of up to +0.82 and will likely have a similar price action during this intraday.
Trade Recommendations:
Remain short with your target along the lower supportive trend line. A breakout below this support trend line will mean looking for further short positions with your target at 1.1027. A clear rebound from this trend line will mean we are headed long with wave (c) with our target at 1.1492.
Origin: FreshForex
