Elliott waves for Forex correlation analysis – Expect an acceleration to the upper side

Wave Analysis

Unfortunately, our stop got hit when the pair broke above a key supply level 101.92, we expect the just broken supply level to act as a demand level to the current downward rally. Thus, instead of going short, we sit on the sidelines and wait for a clear rebound from 101.92 to go long with an ideal target at 103.27. A rebound from 101.92 is highly likely since this level was used as a demand level 30th August 2016, and may act as a strong demand level during this intraday. Expect a similar chart structure and set up in other pairs such as CAD/JPY and NZD/JPY. These pairs have a strong positive correlation of up to +0.90 and will have a similar price action during this intraday.