Remain long | 01 November 2016

Wave Analysis

Yesterday, the pair rose from $1.2139 to $1.2253. The previous day's candle is a strong bullish candle and will likely push the price further to the upper side towards the short term resistance zone. The anticipated upward rally should be the continuation of the impulsive wave E towards $1.2438 or even higher. This view can only be invalidated in case the the cable end up breaking below $1.2184. If the latter is the case, then an acceleration to the lower side is inevitable. We expect an exact similar impulsive wave count in EUR/USD and EUR/AUD. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday.

Trade Recommendations:

Remain long with an ideal target at 1.2438