In our previous analysis of EURUSD we said that the pair could revisit 1.35. We still think so, but it looks like there would be another new low first. As Tom Denham puts it “update wave counts as often as market developments inspire a better idea”. So, in this case, the better idea is a fourth wave triangle.
Triangles precede the final movement of the larger sequence. The final movement here should be wave 5, which seems to be in progress already. Typically, fifth waves form new price extremes, unless there is a truncation. That is why we expect a new bottom in wave 5, probably in the gravity of 1.3300. This level could provide enough support for the bulls to return, at least temporary.
