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Elliott waves for Forex correlation analysis – Wait for a break below 1.1680


Wait for a break below 1.1680

Wave analysis.

EURUSD is still bearish despite a slight pull back in the previous intra-day. This pull back is expected to be only temporary before the impulsive wave (c) picks momentum to extend downwards towards the weekly support level at 1.1680. You could pick a low risk short position with the first take profit at 1.1680 or if you are reluctant, wait for a break below 1.1680 and short the EUR with your target at 1.1120.This bearish rally is only valid as long as price is below 1.1873.A break above 1.1873 could invalidate this trade. Trade this pair alongside GBPUSD, NZDUSD, AUDUSD, and GBPAUD since these pairs have a strong positive correlation.

Trade recommendation.

Wait for a break below 1.1680 to short this pair towards 1.1120.

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