EURUSD has ended a big, bearish cycle down from 1.256 area, with an Elliott wave ending diagonal in the final piece of a bigger wave A impulse at the 1.087 low. Price then followed with a correction in a wave B and found resistance at the 1.122 level from where a new sharp drop is now unfolding, and it may reach more weakness after any short-term rally. The trend may go sideways on a daily close above 1.1.
EURUSD, daily
On the 4h chart, EURUSD keeps moving lower, now within a higher degree wave, 3 that should also be made by five sub-waves, so the ideally current rally is the fourth wave that can stop at 1.0875 resistance back from October lows. We see the market in a downtrend if the pair remains trading below 1.1 regions.
EURUSD, 4h
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Elliott wave analysis: EURUSD In a Downtrend
