On March 30th we showed you our big picture outlook on EURUSD, in which we stated that the European currency may be near a major top, after which we should expect a reversal. Now, what we are going to do here is to show you a different, although again bearish scenario, according to which the rally in EURUSD may be even closer to its end. On the first chart below you can see the weekly chart. There are no changes in it, compared to the previous analysis.
The differences are visible, when we take a look on the daily chart below. With a little relabeling we can assume that EURUSD is currently in the fifth wave of an ending diagonal, thus finishing the whole big triangle marked as “X circled” on the weekly chart.
We can not pick a favorite scenario right now, since both of them seem very likely. We only have to say, that in either case EURUSD should reach the 1.40 mark. After that, we will have to pay attention and look for early signs of what the Market will decide. However, prices of 1.10 remain as a long-term target for the Euro against the US dollar.