26 April 2016, EUR/USD
EUR/USD is currently trading with a bearish bias. Yesterday, the pair rebounded from the key support level 1.1218, and is currently headed long. We expect the current upward rally to be a mere retracement towards 1.1283 from where we will be looking for possible reversal. Ideally, during this intraday, key levels are seen at 1.1218, 1.1283, 1.1333, and 1.1444. A clear breakout above 1.1285 will lead to an acceleration to the upper side with an ideal target at 1.1453. A clear rebound from 1.1283 will AUD/USD and EUR/CHF. These pairs have a strong positive correlation of up to +0.89 and will have a similar price action during this intraday.
As long as the levels 1.1283-1.1286 protects the upper side, look for possible rebound from these levels to go short with an ideal target at 1.1218. This view can only be invalidated if the current upward retracement ends up breaking above 1.1283.
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