Corrections | 12 سبتمبر 2017

Wave Analysis

Yesterday, we witnessed a possible corrections of the impulsive wave (5), with price rallying merely 75 pips below it's opening price. This pair could possibly be over bought, thus we expect this bearish correction to continue to the lower side but should not go beyond the support level 1.1670. This bearish price is highly anticipated since the intraday stochastic is is almost breaking below its neutrality level of 50 and could accelerate further towards the oversold level of 20. This pair will have a similar price action with GBPUSD, NZDUSD, AUDUSD, and EURHKD. These pairs have a strong positive correlation of up to +63% and will move in the same direction during this intraday.

Trade Recommendatioons:

Expect further corrections with a target at 1.1670.