EURUSD Elliot Waves Analysis For 2 June 2016 | 02 Juni 2016

Wave Analysis:

EUR/USD is currently trading with a bearish bias. Yesterday, the pair traded long and even broke above the resistance level 1.1192 but is currently retracing towards it. The current downward rally is the continuation of wave (4) and should not close below 1.1192 from where we'll be looking to buy wave (5) towards 1.1221. A close below this target may push wave (4) further to the lower side but should not go below the end of wave (1). This pair should be traded alongside NZD/USD and AUD/USD. These pairs have a strong positive correlation of up to +0.96 and will likely have a similar price action during this intaday.

Trade Recommendations:

Remain short but only up to 1.1189. A break below this target may push the price further to the lower side. Buy positions are only recommended upon a clear rebound from 1.1192 or above 1.1221