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EURUSD Elliot Waves Analysis For 4 May 2016

04 May 2016, EUR/USD

EURUSD Elliot Waves Analysis For 4 May 2016

Wave Analysis:

EUR/USD is currently trading with a bearish bias. Yesterday, Instead of going long as previously forecasted, the pair rebounded from a key resistance level 1.1588, and is currently headed short. As long as the pair trades below 1.15391, we expect an acceleration to the lower side. Only a clear breakout above 1.1588 will push the price further to the upper side. During this intraday, key levels are seen at 1.1588, 1.1539, 1.1453, 1.1380, 1.1283 and 1.12177. This pair should be traded alongside EUR/GBP. These pairs have a strong Negative correlation of up to -0.85 and will likely move in an exact opposite directions. Ideally, As long as Euro and The Cable move strongly in the same direction, expect EUR/GBP to move in an exact opposite direction.

Trade Recommendations:

As long as the level 1.1539 protects the upper side, expect a downward acceleration towards 1.1444. A breakout below this level will push the price further to the lower side with the next target target at 1.1350. This view can only be invalidated if the price ends up breaking above 1.1539.

Graham Osano
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