Bearish Momentum developing. | 11 اكتوبر 2016

Wave Analysis

Instead of going long as previously forecasted, the pair traded short and even broke below the lower trend line forming bottom of the wedge. The impulsive wave E is truncated, which means, there was no enough bullish pressure to push the price to the upper side. At the moment, its very risky to execute long orders, instead, we look for potential sell signals towards $1.1042. We hope to trade this pair alongside USD/CHF, and USD/JPY. These pairs have a strong negative correlation of up -86% and will have an exact opposite price action during this intraday.

Trade Recommendations:

As long as the pair trades below the lower trend line, remain short with an ideal target at $1.1042.