Elliott waves for Forex correlation analysis – sell euro around 1.2205


Wave Analysis:

Yesterday, euro opened at 1.2259, went as high as 1.2322 and as low as 1.2184 but ended up closing at 1.2184, several pips below its opening price. The previous day’s candle is a perfect bearish engulfing candle and indicates a possible increase in the number of sellers in the market. Thus, during this intraday, and the next few days we expect a possible momentum to the lower side but should get supported around 1.1995. The current upward rally is mere correction of the previous day’s rally, and may not go above 1.2205. This pair should be traded alongside EURAUD, EURHKD, and EURCAD. These pairs have a strong positive correlation and may move in the same direction today.

Trade Recommendations:

sell euro around 1.2205 with your take profit at 1.1995

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