Look for short positions towards 1.16127. | 21 Agustus 2017

Wave Analysis:

After hitting the highs of 1.19090, euro entered into a wedge like consolidative retracements, and should move further to the lower side. We expect this downward rally to be the continuation of a corrective three wave cycle and may break below the daily support level 1.16127. If this support is broken, then we expect further drop towards 1.1132. This pair will have a similar price action to GBPUSD, AUDUSD and NZDUSD. For the past few years, these pairs have had a strong positive correlation of up to +71% and will have a similar price action during this intraday. Only buy or sell euro if the other pairs are giving the same signal.

Trade Recommendations:

Look for short positions towards 1.16127.