EURUSD has slipped through 1.1630 mark today, and it might form a bottom around 1.1610 levels before pulling back. The currency is very close to carving a major bearish boundary since 1.1880 highs and it should resume a reasonable pullback towards 1.1750 at least.
EURUSD is expected to continue pushing lower towards 1.1150 levels after the above proposed pullback is complete. The entire structure from 1.2010 is looking to unfold as a standard flat 3-3-5 of which the first two waves seem to be complete.
The last wave should unfold into 5 waves and the recent drop from 1.1880 through 1.1630 could be wave i of 5 respectively. If the above short term wave counts are correct, EURUSD should rally towards 1.1750/80 zone to complete wave ii of 5.
Looking at the earlier wave structure, EURUSD had dropped through 1.0636 lows in March 2020. Since then, bulls have remained in control and managed to carve an impulse wave from 1.0636 through 1.2010 levels respectively. The entire rally unfolded into 5 waves.
Ideally, an impulse wave is followed by a corrective wave in the opposite direction. The price action and wave counts since 1.2020 highs already suggest, a counter trend drop might be underway. A 3 wave corrective drop should push EURUSD towards 1.1150 lows.
Also note that 1.1150 is fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2010 levels respectively. If prices manage to reach there, probability remains high for a bullish reversal. EURUSD bulls might remain poised to take control back from lower levels.
Short against 1.2010, targeting 1.1150