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EURUSD moved to the upside in the last few weeks, after it finally broke out of a wave B) triangle pattern that we have been tracking it for almost two months. Leg up was very sharp so it was probably an impulsive wave C of wave C-circled that belongs to a big triangle formation. The recent sharp move to the downside from 1.137 is ideally wave A), the first leg of a three wave move of the blue wave D-circled, that can find a bottom at the previous swing lows around 1.07107 and turn higher into wave E-circled.

EURUSD, Daily

eurusd d

On the lower time frame, an extension beneath 1.0900 in the last few sessions and a sharp weakness from 1.1069 suggests EURUSD is already in wave C), third leg of a three wave fall from 1.1377 that we think represents a big wave D-circled of an ongoing triangle. If we are correct then the current decline will extend to around 1.0700 area this month, from where we will look for another turn up with three legs in wave E. For now, intraday-trend is down as long as 1.1069 holds.

EURUSD, 4H

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