01 November 2016, EUR/USD
As previously anticipated, the corrective wave (4) traded short but could not go beyond the short term support level $1.0942. We expect the level 1.0942 to have marked the end of the corrective wave (4), that the current upward rally is the unfolding of the impulsive wave (5) towards the resistance level $1.10371 or even higher. Although the upward rally is highly anticipated, conservative traders should wait for a clear breakout above $1.099 to go long. This pair should be traded alongside GBP/USD. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday.
Conservative trader should wait for a breakout above 1.099 to go long.