EURUSD Elliot Waves Analysis For 5 May 2016 | 05 May 2016

Wave Analysis

EUR/USD is currently consolidating within the red triangle. Yesterday, the pair traded short but could not go below 1.14532. During this intraday, we are waiting for a clear breakout above the red triangle to lead to an upward acceleration, or a breakout below it to push the price to the lower side. Ideally, a breakout above the triangle will push the price to the upper side but should not go above 1.1588. A breakout above this resistance level will push the price further to the upper side. This pair should be traded alongside, GBP/USD, AUD/USD, and NZD/USD. These pairs have a strong positive correlation of up to +0.94 and will likely have a similar price action during this intraday.

Trade Recommendation:

Remain flat for now and wait for a clear breakout above the triangle to go long with your targets at 1.1539 and 1.1588. A clear breakout below the triangle will push the price to the lower side with targets at 1.1444 and 1.1380.