Earlier the previous trading day, the pair rose from $1.089 towards $1.097. The current chart set up and structure signs of a possible cup and handle formation. With the zone 1.08906-1.08689 acting as the bottom of the cup, we are waiting for a handle formation, that is a possible correction of the motive wave (3) towards 1.0944 to buy the impulsive wave (5). Any clear developments below the end of wave (1) will invalidate the anticipated upward rally and could lead to a possible bearish price movements towards 1.0890. We hope to trade this pair alongside USD/CHF and USD/JPY. These pairs have a strong negative correlation of up -86% and will have an exact opposite price action during this intraday.
Conservative traders should wait for minor corrections towards $1.0944 to go long with an ideal target at 1.1037
Margin Trading in the Forex market contains risks and can cause in significant financial losses. Before deciding to trade in the foreign exchange market, make sure that you understand the risks according to your financial experience and knowledge.