Despite the bearish pin bar seen few days ago, euro could not go any lower, rather, the impulsive wave (5) extended massively to the upside and is still pretty much bullish. Today, and in the next few days, we expect a possible extension of the impulsive wave (5) to the upper side but should not go beyond 1.27. If this target is taken out, then we expect further extension to the upper side with an ultimate target at 1.30. In the meantime we're waiting for a slight correction to the lower side to pick a long position around 1.2103. This pair should be traded alongside GBPUSD, EURHKD, NZDUSD and EURAUD. These pairs have a strong positive correlation of up to +52% and will move in the same direction today.
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