EURUSD Elliot Waves Analysis For 29 February 2016
29 February 2016, EUR/USD
EUR/USD is currently trading with a bullish bias. On the daily chart, the price is bearish, while on the hourly chart, euro is rebounding from the lower supportive trend line. Since the higher time frame is highly bearish, but the lower time frame is bullish, the current upward is likely to be short-lived only up to the upper restive trend line. Although the pair is in an overall downward trend, we will remain long in the meantime and only sell from the upper resistive trend line. Ideally, we will remain long with the back wave , and only sell upon a clear rebound from the upper resistive trend line. This pair should be traded alongside other positively correlated pairs such as EUR/HKD, EUR/CAD, and AUD/CAD. 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 long in the meantime, but only up to 1.108, then sell the pair with your ultimate target at the lower supportive trend line.
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