EURUSD in Triple Correction and Correlation with Gold

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 EURUSD daily chart

Analysis

As seen in the above daily chart, prices are making a high at 1.12 started tumbling down in a lower highs and lower lows fashion which is a negative setup. Just before US inflation data the pair was trading near to the resistance of the trend line and later it started shedding the gains as the pair was trading well above 1.0630 levels.

From Waves perspective, prices are moving in triple correction (a-b-c-x-a-b-c-x-a-b-c) where in the first two correction is done and recently it also completed wave x at 1.0635 levels which has opened the third correction in the form of (a-b-c). However, if the pending correction does not happen and before that 1.0650 is taken out then it will not be the tripe correction as anticipated.

It is also believed that there is a perfect positive correlation between Gold and EURUSD which seems to be decoupling as Gold has rallied the most post middle east conflict whereas EURUSD is under pressure due to Dollar strength. Below is the chart of correlation.



The summation is EURUSD is negatively poised as far as it is below 1.0650 levels and can remain lower below 1.0450-1.0350 levels for some time.

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