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Bearish engulfing candle

21 October 2016, EUR/USD

Bearish engulfing candle

Wave Analysis

Yesterday, the pair traded massively short and even engulfed the previous trading day's candle(19th Oct 2016). Following the engulfing candle witnessed yesterday, we expect further bearish wave count towards $1.0822 or even lower. The anticipated downward rally is the continuation of the impulsive wave (c) to the lower side. At the moment, its very risky to buy this pair instead, we choose to remain short. Trade this pair alongside USD/CHF; this pair had an exact opposite bullish engulfing candle and will continue to the upper side. As long as usd/chf is bullish, we remain short in Euro. These pairs have a strong negative correlation of up to -82% and will have an exact opposite price action today.

Trade Recommendations:

Remain short with the first target at $1.0822.

Trade T

Graham Osano
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