08 September 2015, EUR/USD
EUR/USD is currently trading with a Bullish Bias. The pair managed to close above the 61.8% fib level and also above the resistance trend line. As long as the pair trades above these levels, long positions are recommended but with the first stop at the 50.0% fib level, and the next stop at the 1.1384 key level. Basically, we anticipate that, the current wave will rally downwards and bounce off from the trend line before heading long.However, should the price move down and close below the now support trend line and also below the 61.8% fib level, then short positions will be ideal for trading. Traders trading this pair should observe other pairs such as EUR/CAD for positive correlation. The two pairs had a very strong positive correlation of up to +099 during the previous business day and this correlation is expected to continue.
As long as the pair trades above the now support trend line and also above the 61.8% fib level, then long positions are recommended but only up to the key level 1.1384. Any clear movements above this level will signal further movements upto the key level 1.17106 which is also the previous week key pivot.