Flat momentarily | 13 February 2017

Wave Analysis:

Despite the bullish engulfing candle witnessed on the weekly chart during the previous trading week ending Feb 3rd 2017, the Euro retraced further to the lower side and is currently edging towards a key support at 1.069, unless there’s a clear breakout below this level, we choose to remain flat momentarily and wait for this breakout. Alternatively, there could be a rebound from this level to go long. Expect a similar price action in GBPUSD, AUDUSD and NZDUSD. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday. Only buy or sell euro if the other positively correlated pairs are giving the same trade signal.

Trade Recommendations:

We are waiting for a clear breakout below 1.0626 to go short with our target at 1.0413. Buy positions may only be recommended upon a clear rebound from 1.0626 or above 1.0757.