Bears slowly gaining control | 14 July 2017

Wave Analysis:

Few days ago, the impulsive wave (v) extended higher but could not go beyond the resistance level 1.1463. We expect the downward rally that began two days ago to be a mere corrective three wave cycle and should not go beyond the daily support level 1.08649 during this intraday. With this correction, the first impulsive wave (a) should not go beyond 1.12824, a break below this level may push the price further downwards towards 1.08649. As at now, this pair is not good for buy positions. This pair should be traded alongside EURHKD, AUDUSD, NZDUSD and HKDJPY. These pairs have a strong positive correlation of up to +72% and will move in the same direction during this intraday. Only buy or sell Eur if the other positively correlated pairs are giving the same signal.

Trade Recommendations:

Expect a possible bearish price rally towards 1.12824