EUR/USD is currently trading with a slight Bullish bias. Eur continues to pullback upwards towards the now resistant trend line even as EUR/CAD, a positively correlated pair, is trading along a very significant resistant trend line, 1.4583. We expected this retracement to end along the resistant trend line otherwise we will continue long. Ideally, should EUR/CAD fail to close above 1.4629, then we will be short on both pairs as long as EUR/USD also trades below the resistant trendline. We expect wave (c) to close right below 1.08696.
As long as EUR/USD trades below the resistive trendline and EUR/CAD below 1.4629, then short positions should be ideal for trading but with TP at 1.09833 and 1.08697. In an alternative scenario, should the price close above the resistive trendline, then we will assume that the price was merely testing the trendline, and thus we expect to continue long, as long as EUR/CAD also trades above 1.4629
Margin Trading in the Forex market contains risks and can cause in significant financial losses. Before deciding to trade in the foreign exchange market, make sure that you understand the risks according to your financial experience and knowledge.