Remain flat momentarily | 21 February 2017

Wave Analysis:

As previously forecasted, Euro rallied to the lower side and is currently stalling around a key support level 1.07525. Unless there’s a clear break below this level, we choose to remain flat momentarily and wait for a clear rebound from this level to go long. A break below this level will mean we’re continuing short with the impulsive bearish wave count that started on Feb 6th 2017 but should not go below 1.04108. As long as this pair remains bearish, expect an exact opposite price action in USDJPY and USDCHF. These pairs have a strong negative correlation of up to -85% and will have opposite price movements during this intraday.

Trade Recommendations:

Remain flat momentarily but expect a break below 1.05725 to continue short. A clear rebound above 1.05725 will mean looking for long positions with an ideal target at 1.07552.