EUR/USD is currently trading with a bearish bias. During the previous trading day, Euro traded long and ended up finding a resistant at 1.105, marking the end of wave (4). We expect the current downward movement to be the continuation of wave (5) with a target at 1.06 or even lower to 1.05. This pair should be traded alongside other pairs such as CAD/HKD, CHF/JPY, EUR/CAD, CHF/ZAR and EUR/NOK. These pairs have a strong positive correlation of up to +0.93 and are thus expected to have a similar price action. Only buy or sell Euro if all the other positive correlated pairs are giving the same signal.
Remain short with your targets at 1.063 and 1.050.
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.