11 May 2016, EUR/USD
EUR/USD is currently trading with a bullish bias.Yesterday, the pair traded short but could not close below the descending trend line. During this intraday, We expect an upward acceleration but should not close above 1.1396. Ideally, we expect the upper resistive trend line to mark the end of wave (4) but should be the beginning of wave (5). A clear breakout above 1.1396 will push the price further to the upper side but should not go above 1.1438. However, as long as the pair trades within the descending channel, we expect a rally to the lower side. This pair should be traded alongside EUR/GBP, NZD/USD, GBP/USD. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday.
If you are long already, wait for a clear breakout above 1.1396 then buy with you target at 1.1438. However, as long as the level 1.1396 holds true as a strong resistance, look for short positions with your targets along the lower supportive trend line.