01 March 2016, EUR/USD
EUR/USD is currently trading with a bearish bias on the daily chart. During the previous trading day, Euro traded massively short and is still pretty much bearish. Although we anticipate further bearish movement during this intraday, in the short run, we will be waiting for an upward retracement towards the upper resistive trend line for us to end wave (4) and to begin wave (5). Otherwise, if the price should turn bearish before reaching our target trend line, then short orders should be executed immediately since the overall direction is bearish. This pair should be traded alongside other positively correlated pairs such as EUR/CAD, and EUR/ZAR. These pairs have a strong positive correlation of up to +0.89 and are thus expected to have a similar price pattern. Only buy or sell Euro if all the other positively correlated pairs are giving the same signal.
Remain long but only up to 1.091. A clear break above 1.092 will call for further long positions with an ultimate target along the upper resistive trend line. Sell from the upper trend line, with your ideal target at 1.081.
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