Current upward rally just a retracement
10 November 2016, EUR/USD
The pair spiked to the lower side following the a massive rise witnessed earlier yesterday. Although we expect further bearish price rally, we choose to sit on the sidelines and wait for more confirmations that a new bearish impulsive rally is developing. The first confirmation was a break below 1.098 and the next should be a breakout below 1.0907. Expect a similar wave count in GBP/USD and EUR/AUD. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday. Only buy or sell Euro if GBP/USD and EUR/AUD are giving are giving the same signal.
Expect a possible bearish wave count as long as the pair trades below 1.09433. Any clear developments above 1.0987 may invalidate the anticipated downward rally and could culminate into a possible bullish price movements towards 1.1091.
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