25 May 2016, EUR/USD
EUR/USD is currently trading with a slight bullish bias. Yesterday, the pair traded short and even broke below a very significant support level 1.1166 and is currently retracing towards it. We expect the current upward rally to be a mere upward retracement and should not go above 1.1166. A break above this level will lead to an acceleration to the upper side, but should not close above 1.12177. This pair should be traded alongside NZD/USD, AUDF/USD and ER/HKD. These pairs have a strong positive correlation of up to +0.96 and will likely have a similar price action during this intraday.
If you are not short already, wait for the current upward pullback to end along 1.1166, then go short with your target at 1.1099. Buy positions are only recommended above 1.1166 with an ideal target at 1.12177.
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