03 June 2016, EUR/USD
EUR/USD is currently trading with a slight bullish bias. Yesterday, wave (5) ended a bit earlier than expected and even closed below our target resistance level 1.12177, before heading massively short. Following the break below 1.1160, we expect the current upward rally to be a mere corrective upward rally and should not close above 1.1166, a break above this level may lead to an upward rally towards 1.1192 but should not close above 1.12177. Ideally, this pair is in an overall downward trend and may accelerate towards 1.1104 upon rebounding from the zone 1.1160-1.1166. This pair should be traded alongside Gold, EUR/GBP, and Silver. These commodities and Currencies have a strong positive correlation of up to +0.90 and will have a similar price action during this intraday.
If you are not short already, wait for the current upward rally to go short with your ideal target at 1.11045. Buy positions are only ideal if the current pullback close above 1.1166. If the latter is the case, then buy the pair with your targets at 1.1192 and 1.1217.