EURUSD seems to be oscillating sideways within a potential triangle formation since 1.1915 highs over the last week. The currency pair needs to break below 1.1700 interim support to confirm a top in place. Bears are expected to be back in control thereafter.
EURUSD is trading around 1.1860 mark as we prepare the update and might threaten a break above 1.1916, going forward. The push would be shallow and the last thrust wave before reversing lower again. The next resistance seen is around 1.1970/75 levels.
EURUSD has been in control of bulls since 1.0636 lows in March 2020. The currency has unfolded into 5 waves higher as labelled here, and completed the impulse wave at 1.1915 or is near to terminating. Ideally, an impulse wave is followed by a corrective wave.
EURO is expected to produce a corrective wave at least towards 1.1200 levels. Also note that the recent 5 waves rally between 1.0636 and 1.1915 could be a part of an expanded flat corrective wave. If the latter is unfolding, we are in for a bearish reversal.
The bearish reversal could take prices below 1.0636 in the next several weeks. The entire structure is looking constructive for bears but we need to see a break below 1.1700 to confirm from here. Alternately, a thrust rally above 1.1915 would mark the end of the impulse.
Either way, EURUSD is setting up for a bearish reversal soon and could potentially change the trend for next several weeks.
Short against 1.1970, targeting below 1.0636.