EURUSD Still to trade on the lower ranges | 01 September 2016

Wave Analysis

Yesterday, the pair retraced to the upper side as previously forecasted but is currently bearish on the 4 hour chart. During this intraday, we expect to continue short with the impulsive wave 5 towards 1.1079 or even lower. As long as the pair trades below 1.1152, we expect a momentum to the lower side. This view can only be invalidated in case the pair end up breaking above 1.1152, if the latter is the case then we expect a possible bullish price rally towards 1.1190. This pair should be traded alongside GBP/USD and NZD/USD. Expect similar motive waves in these pairs since all of them have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with an ideal target at 1.1079.