US Dollar Possibly Oversold? | 02 Agustus 2017

Wave Analysis

For the past two days, instead of going short as previously forecasted, we've seen an unexpected corection of the impulsive wave (5). This corrective wave count could extend even higher during this intraday, thanks to the intraday stocharstioc being below it's overbought level of 20. We expect the stocharstic line to rebound from 20, and to streach towards the 50th level. 112.003 is a key daily resistance level and unless its cleal broken to the uppesride, this may as well be the best short place. Expect a similar wave count in CADJPY, CHFJPY, NZDJPY and AUDJPY. These pairs have a strong positive correlation of up to +63% and will move in the same direction during this intraday.

Trade Recommendations:

Expect further bullish corrections towards 112.003