EURUSD fell sharply last week and closed well below 1.3034 swing low support which puts bearish price action in play. In fact, decline from 1.3195 was very strong and sharp which in many cases represents an impulsive wave and direction of a trend. As such, we need to respect this price action so we think it’s better to stick with the downtrend and look for possible short entries at this stage.
From an Elliott Wave perspective we are tracking one-two, one-two set-up with sub-wave (ii) now underway to 1.3020/50 resistance area.
The reason why we also expect bearish price action to continue is a broken channel line on the Daily chart as shown below. We however would turn bullish again only if we pass 1.3130 level.
EURUSD Intra-day
EURUSD Daily
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