Log in

Bearish momentum developing

19 October 2016, EUR/USD

Bearish momentum developing

Wave Analysis

As anticipated, the corrective wave (b) could not go higher than the short term resistance level $1.1055. Instead, it rebounded from this level and even broke below 1.1004, following the close below $1.1004, we expect a possible bearish count towards the support level $1.0822 or even lower. The current downward rally is the unfolding of the impulsive wave (c) and may end up below $1.0822. This view can only be invalidated in case the pair end up breaking above 1.1055. Expect a similar wave count in GBP/USD and EUR/AUD. These pairs have a strong positive correlation of up to +71% and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with an ideal target at 1.0822.

Graham Osano
See also:
Agree with the review?
Traders' opinion:

Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us

Tell us

Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with rendering Personal area. How to enable cookie support.