Euro still retracing but should not go beyond 1.07375 | 24 March 2017

Wave Analysis:

As previously anticipated, the corrective wave (4) continues to retrace to the lower side but should not go beyond 1.07375 from where we'll be looking to buy the impulsive wave (5) towards 1.100. A break above this level will likely push the price further to the upper side but should not go beyond 1.1298. This view holds true as long as the pair remains above 1.07375, if the price breaks below 1.07305 then we'll wait for a break below 1.07169 to confirm the continuation of the bearish price rally towards 1.06742. Expect an exact opposite wave count in USDCHF, USDJPY and CADJPY. These pairs have a strong negative correlation of up to -74% and will move in opposite price action during this intraday

Trade Recommendations:

Expect a possible rebound from 1.07375 to go long with an ideal target at 1.1298. Alternatively, you could wait and go long above 1.08272.