Euro failed to sustain the break below 1.05858 | 06 December 2016

Wave Analysis:

Yesterday, Euro failed to sustain the breakout below 1.05858, instead, the pair rose relentlessly and even took out our stops. Following the breakout above 1.06826, we expect further rally to the upper side but only after retracing to the just broken resistance level. The current downward rally on the 4hour chart is a mere corrective rally(wave (b)) and should not go beyond 1.06826 from where we'll be looking to buy the next impulsive wave (c) towards 1.08734. This upward rally is highly anticipated since the previous day's candle, pretty much engulfed the day before's candle and will likely push the price further to the upper side. Expect a similar wave count in EUR/CHF, GBP/USD, EUR/HKD and an exact opposite price action in USD/JPY and USD/CHF.

Trade Recommendations:

Wait for minor corrections towards 1.07288 -1.06826 to go long with the first target at 1.08837.