EUR/USD is currently trading with a bearish bias. During the course of the previous week on Thursday, Euro fell but did not reach our target of 1.081. We still expect further movement to this level, but should the price turn bullish, then we will look for long positions with targets at 1.10.
Traders trading this pair should observe closely other pair such as EUR/SGD, EUR/HKD, AUD/USD and GBP/USD. These pairs have a strong positive correlation of up to +0.85 and are thus expected to have a similar price action. Only buy or sell Euro if all the other positively correlated pairs are giving the same signal.
Remain short with a target at 1.081. Any clear break below 1.081 will call for further short positions with targets below 1.05