27 October 2016, EUR/USD
The Euro continues to retrace to the upper side despite our expectations to continue to the lower side. The current chart set up and structure shows signs of a possible increase in the number of buyers, nonetheless, we expect the current upward rally to be a mere corrective move and should not go beyond $1.1004. Any clear breakout above $1.1055 will lead to a possible bullish price rally towards $1.1279. Expect a similar wave count in GBP/USD. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday.
Conservative trades should wait for a clear rebound around $1.09720 to sell the impulsive wave (5) towards $1.0716