EURUSD might have carved a lower high around 1.1880 levels over the last week. The currency is trading around 1.1830/35 mark as bears are looking prepared to push further lower. Bottom line remains that prices should stay below 1.2010 levels, going forward.
EURUSD had dropped through 1.0636 lows in March 2020. Since then, it has remained in control of bulls and managed to carve a series of higher highs and higher lows through 1.2000 handle. The currency seems to have completed a larger degree impulse wave between 1.0636 and 1.2010.
If the above proposed structure holds well, EURUSD should be preparing to reverse lower at least as a corrective wave if not further. The corrective drop could reach 1.1150 levels in the next several weeks, before finding support.
Furthermore, the fibonacci 0.618 retracement of entire rally between 1.0636 and 1.2010 is also seen around 1.1150 levels respectively. Bulls would remain poised to take control back, if prices manage to reach there (1.1100/50).
Also note that the drop between 1.2010 and 1.1610 was in 3 waves hence corrective. The subsequent rally from 1.1610 through 1.1880 has also been in 3 waves until now. High probability remains for a 5 wave drop from here, pushing prices lower towards 1.1150.
Only a push above 1.2010 would change the above structure and delay matters for the proposed corrective drop. EURUSD remains a good candidate to be sold on rallies through 1.1900/50 zone.
Short against 1.2010, targeting towards 1.1100/50