EURUSD might be preparing to break below 1.1700 levels, which is immediate support on the daily chart. Last week, the currency had peaked through 1.1915 levels, before reversing lower again. Bears might seem to remain in control going forward.
EURUSD is close to completing 5 wave rally from 1.0636 or it has completed at 1.1915 already. If the latter is correct, bears would remain poised to push lower from here. Furthermore, the bullish trend since last several weeks might have terminated.
Ideally, a 5 wave rally should be followed by a 3 wave corrective drop. But in this case, the counts are suggesting a trend reversal from here on. Please note that the 5 wave impulse rally is a part of an expanded flat corrective structure.
Hence, the next high probable move is lower from here and potentially below 1.0636 interim support since March 2020. For the above to confirm, EURUSD should at least complete an impulse drop on lower timeframes and break below 1.1700 mark.
Once the above is in place, it would be considered a safe strategy to sell EURUSD on rallies with potential risk above 1.1915 mark. Alternately, if prices manage to push through 1.1915, it should probably push towards 1.1975 before reversing lower again.
Bottom line remains that EURUSD is expected to drop either from here or around 1.1975. Upside remains limited from here and traders might remain inclined to sell on rallies, going forward.
Short against 1.1960, target remains open.