Wave Analysis:
EUR/USD is currently trading with a bearish bias. During the previous trading day, Euro traded long and ended up hitting our target resistance 1.1323. We expect the current downward rally to be the unfolding of wave (c) with our ideal target at 1.10277. Thus, During this intraday, we will be keen to look for short positions with our ultimate target at 1.1010. This perception can only be invalidated if the price ends up closing above 1.1338. If the latter is the case then we will buy the pair with out target at 1.1492. This is however highly unlikely since the intaday stochastic just broke below its neutrality level of 50, and is headed perfectly short. Added to this is the fact that, GBP/USD, a positively correlated pair is also pretty much bearish. We will therefore remain short in both pairs since pound dollar is also pretty much bearish.
Trade Recommendations:
Remain Short with your ultimate target at 1.1027. Only buy in case the price breaks out above 1.1338 with you target at 1.1492.
Origin: FreshForex
