EURUSD has carved a meaningful top around 1.2010 early this month. It has dropped almost 400 points since then and might be preparing for a pullback. The overall structure continues to remain bearish until it stays below 1.2010 mark, going forward.
EURUSD had earlier managed to rally from 1.0636 lows through 1.2010, sub dividing into 5 waves. The above impulse wave should be ideally retraced by a corrective drop towards 1.1150 mark in the next few weeks. Please note that 1.1150 is also Wave 4 of one lesser degree.
Furthermore, the fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2010 is also seen towards 1.1150 levels. Another point of convergence is that past resistance turned support is around 1.1120 mark. Probabilities remain high for a bullish bounce if prices reach there.
The short term counts are also suggesting that potential lower degree Wave 3 could be underway since 1.1915 levels. If correct, prices should ideally stay below 1.1915 and continue pushing towards 1.1500 at least. It remains to be seen if the drop unfolds into a 3 wave decline or an impulse.
EURUSD might produce intraday rallies towards 1.1780/85 levels which could act as resistance. If bulls manage to push above 1.1915 interim resistance, it would imply that a flat corrective drop might be unfolding from 1.2010 mark.
In that case, EURUSD might reach close to 1.2010 levels before turning lower again. Alternately, if it drops further from here and produces an impulse wave, we might witness a zigzag going further.
Short against 1.2010, target is open.