On April 13th EURUSD was at 1.3885 and the majority of traders was still looking for higher levels. We, on the other side, were expecting a pull-back. As you can see on the chart below EURUSD dropped by 100 pips to 1.3785. What the chart shows is the common 5-3 Elliott Wave cycle, telling us that we should prepare for a recovery now.
Considering the bigger picture, 1.40 seems to be a reasonable target for wave C up, but once it is reached, we have to be careful, because it might be the final top for EURUSD.
