Wave Analysis
EUR/USD is currently trading with a slight bullish bias. Yesterday, the par traded short as previously forecasted but could not reach our target support level 1.1160. We expect the current upward rally to be a mere retracement and should not go above 1.12177. A clear breakout above this level will lead to an acceleration to the upper side while a clear rebound from this level will lead to a momentum to the lower side. A rebound from 1.12177 is highly likely since we expect to continue with wave (5) to the lower side. This pair should be traded alongside AUD/USD, EUR/HKD and NZD/USD. These pairs have a strong positive correlation of up to +0.92 and will likely have a similar price action during this intraday.
Trade Recommendations:
Remain flat for now and wait for a clear rebound from 1.12177 then go short with your target at 1.1160. A clear breakout above 1.12177 will call for long positions with targets at 1.1283 and 1.1396
Origin: FreshForex
