EURUSD made a three-wave rise from the bottom at 1.35 to 1.3676, but this is far too shallow to be the whole correction of the impulse, we showed you in our last analysis. That is why we think an expanding flat correction is now developing, which includes a new bottom below 1.35. The intraday wave structure suggests, that we should now expect wave “c” of B to the downside.
If 1.35 is taken out, many breakout traders would see it as a signal to open a short position in EUR USD, but if this count is correct, the price is likely to reverse to the upside in wave C. In other words, we expect a breakout, but a fake one.
