EURUSD is in recovery mode after a sharp fall down to 1.3300 last week. For now, the rally from the lows cannot be counted in five waves and the pair is also still trading well below the 1.3518 invalidation level.
EURUSD Elliott Wave Analysis – Click image to enlarge
Therefore, we think that a complex corrective decline from 1.3710 is incomplete and that the market will make one more push down, towards 1.3250 in this week to complete wave C of a second zig-zag that we are tracking.
The pair is now testing a very important level around 1.3430/60 which appears to be ideal resistance zone for wave B; 61.8% retracement and also wave B equality from a second zig-zag. An overlap with 1.3370 would confirm the bearish view.
Any new, aggressive shorts should have stops above 1.3518.
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