EURUSD Elliot Waves Analysis For 6 January 2016

06 January 2016, EUR/USD

EURUSD Elliot Waves Analysis For 6 January 2016
Wave Analysis:
EUR/USD is currently trading with a slight bearish bias. During the previous trading day, the pair crossed and closed below 1.080. We expect that the current upward movement is merely a retracement towards the now resistant level 1.08 before we continue short with targets at 1.055. Ideally, wave (4) should end at 1.080, and wave (5) should unfold from 1.080 to 1.055. This pair should be traded alongside other pairs such as CHF/JPY, EUR/CAD, and EUR/AUD. 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.

Trade Recommendation:

Remain long with targets at 1.08, then sell from 1.080 to 1.055. Any clear move above 1.084 will call for further long positions with ultimate targets above 1.093

Graham Osano
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