Wave Analysis:
This week, the US Dollar gaped above the upper resistive trend line but ended up closing below it. We expect the rejection from this trend line to have marked the end of the corrective wave (D), that the current bearish price rally is the continuation of the impulsive wave (E) To the lower side but should not go beyond 106.09. If you didn’t go short somewhere along the upper trend line, look for short signal to short this pair with your take profit along the lower trendline. This pair should be traded alongside CADJPY, NZDJPY, AUDJPY and CHFJPY. These pairs have a strong positive correlation of up to +71% and will move in the same direction during this intraday. Only buy or sell the US Dollar if the other positively correlated pairs are giving the same signal.
Trade Recommendations:
We’re short with our take profit along the lower trendline
Origin: FreshForex
