EURUSD Elliot Waves Analysis For 8 February 2016
08 February 2016, EUR/USD
EUR/USD is currently trading with a bearish bias. During the previous trading week, wave (5) went a bit higher and got rejected from the resistance level 1.1236. We expect 1.1236 to have mark the end of the 5 wave cycle and that the current downward movement is the unfolding of a corrective three wave cycle with its end at 1.098. Thus, we will be keen to hunt for short positions below 1.108 but with our ultimate target at 1.098. Only a close above 1.1237 would mean we are headed long but with our target at 1.1348. This pair should be traded alongside other positively correlated pairs such as EUR/HKD, and NZD/CHF. These pairs have a strong positive correlation of up to +0.90 and are thus expected to have a similar price action. Only buy or see Euro if all the other positively correlated signal are giving the same signals.
Wait for a break below 1.108 then sell the pair but with your target at 1.098. Only buy upon a clear break above 1.1237 with your target 1.1348
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