EURUSD might be preparing to change its medium term wave structure after printing highs at 1.1422 over the last week. A break below 1.1167 would confirm that EURUSD might be turning bearish, going forward. We present both wave counts here:
Count 1: EURUSD is proceeding towards 1.1500 as Wave 3 rally continues. The rally from 1.0636 through 1.1150 was an impulse, Wave 1 on the chart here. The triangle consolidation terminated Wave 2 around 1.0775 handle. Since then, Wave 3 has been unfolding towards 1.1500 resistance.
Count 2: The earlier drop from 1.1500 through 1.0636 was an impulse, potential Wave 1 (not labelled here). The subsequent price action has been corrective until now, and could be taken as a-b-c counter trend, which terminated around 1.1422. This could be seen as Wave 2 correction (not labelled).
If the former count holds well, EURUSD will ideally stay above 1.1167 mark and proceed higher towards 1.1500 resistance. If the latter count turns correct, EURO would break 1.1167 and continue below 1.0636 eventually.
The currency is seen to be trading around 1.1240 as we prepare this article, and could be looking to resume lower again. A break below 1.1167 would bring back bears in control and we might be looking to sell on rallies thereafter.
Take profits on long positions @ 1.1240 and remain flat for now.
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