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Holding onto short position

18 November 2016, EUR/USD

Holding onto short position

Wave Analysis

For the past few days, Euro has been making lower highs which means the pressure to go short is still way above the pressure from the lower side. The previous day's candle is a strong bearish continuation candle and will likely push the price further the lower side. The anticipated downward rally is the continuation of the the impulsive wave (5) towards 1.0498 and possibly lower. At the momentum, buy positions are pretty much risky and could be fruitless in the long run, instead, we choose to hold onto a bearish bias sentiment on this pair. We expect an exact opposite price action in USD/CHF and USD/JPY. these pairs have a strong negative correlation of up to -78% and will move in opposite direction during this intraday.

Trade Recommendations:

Remain short with the first target at 1.0498

Graham Osano
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