Wave Analysis
Since the beginning of this month, Euro is still rallying within the resistance zone 1.1969-1.1787 but should not break above it. We expect the previous month’s upward rally to have been the continuation of the corrective wave (4), that the price should rebound from 1.1969-1.1787 for us to sell the impulsive wave (5) with our target at the monthly support level 0.9775. If this zone is broken to the upper side, then this pair could rise even further upwards. This pair should be traded alongside EURHKD, and EURAUD. These pairs have a strong positive correlation of up to +82% and will move in the same direction during this intraday.
Trade Recommendation
Expect a rebound from 1.1969-1.1787 to short this pair 0.9777.
Origin: FreshForex
