EURUSD Elliot Waves Analysis For 4 August 2016 | 04 August 2016

Wave Analysis

EUR/USD is currently trading with a bearish bias. Yesterday, instead of going long as previously forecasted, the pair rallied to the lower side and ended up closing below a key support level 1.1159. Although we expect further movements to the lower side, we are waiting for minor retracements to the upper side to give us low risk sell opportunities. This view remains valid as long as the pair trades below 1.1159, a clear breakout above this level may invalidated the anticipated upward rally. Trade Euro alongside EUR/HKD, GBP/USD and AUD/USD. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.

Trade Recommendation:

As long as the pair trades below 1.1159, remain short with an ideal target at 1.1112 and the next target at 1.1054. Buy orders are only recommended above 1.1159 with a target at 1.1241.