24 hours back we were still observing bullish counts on EURUSD, but the sharp fall invalidates it, which means that something is changing. Notice that the pair reversed from its highs in a clearly impulsive fashion through the channel support line of the latest bullish run, connected from 1.3262.
The pair closed well bellow that trend-line which is important evidence for a temporary change in trend. As such, we need to respect this price action and immediately re-adjust the wave counts. The current structure suggests that EURUSD will make a minimum three wave decline from 1.3710, because this is the minimum structure of a corrective price action.
Ideally we will see a simple zig-zag, labeled as an A-B-C move. Currently, the price is still falling within wave A so we will see more sideways and bearish price action beneath 1.3400 and possibly to 1.3315 triangle pivot level after a wave B pull-back which will probably unfold ahead of the ECB rates decision on Thursday.
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