Following the previous article about EUR/USD, here is an update: EURUSD reversed sharply lower last week after the ECB press conference. But despite the recent pull-back, the larger trend for the EURUSD remains bullish.
The reasons is that on a weekly chart we can see that the pair is still above two very important trend-lines connected from 1.0240 and 1.2660. Therefore, we think that the bearish moves are only temporary.
On the 4h chart below we can see that the decline in C from 1.3596 can be counted in five waves, which means that the whole three wave A-B-C decline from 1.3710 high could be near completion.
Keep in mind that the three wave movement is in a corrective structure, so the larger uptrend could resume, but we need some evidences from the market before the bullish case can be confirmed. With that said, we need an impulsive rally back towards 1.3500; only then we will focus on new leg higher, back above 1.3700.
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