EURUSD moved slightly lower last week and broke trendline support with a drop toward 1.1440. From there, we are now seeing a very interesting rebound, which suggests that the higher degree wave four we have been tracking is still in progress and unfolding as a more complex correction.
This could still take the form of a triangle, or even allow for a deeper recovery toward the 1.1670 area. However, in either case, we still view this as a pause within a larger impulsive bearish sequence that should resume once this correction is complete. So overall, we continue to expect a wave five decline as long as price stays below 1.1765.
On the daily chart, it looks like the higher degree corrective phase has already started, and weakness could resume over the coming period, especially after the current wave B rally completes.
We covered this analysis and all markets in this week webinar - you can watch it at the end of this articleÂ
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