Wave Analysis:
EUR/USD is currently trading with a bearish bias. During the previous trading day, Euro traded in a downtrend but could not close below the support level 1.1168. We are waiting for a clear break out below 1.1158 for us to continue short but with our target at 1.1062. a break below 1.1062 will call for further short positions with our next target 1.0822. In an altervative case scenario, a clear breakout above the upper trend line forming top of the falling trend line will mean we are headed long but with an ideal target at 1.1329. If the latter is the case, then we will wait for price to retrace and rebound from this, now supportive trend line for us to go long but with our target 1.1329. Euro should be traded alongside GBP/USD. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday. Only buy or sell Euro if Pound dollar is giving the same signal.
Trade Recommendations:
Wait for a clear breakout below 1.1158 to go short with your target at 1.1062. Only buy upon a clear breakout above the upper trend line forming top of the falling trend line will mean we are headed long but with an ultimate target at 1.1329.
Origin: FreshForex
