“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.” This is an excerpt from an article about EURUSD, which we published on April 22nd, when the pair was trading around 1.3800. If you have your trading platform opened right now, you will see that the European currency reached 1.3994 against the US dollar, which is only 6 pips away from 1.40. We think this should be considered a successful forecast.
Now let’s move our attention to the second part of the statement – the one about 1.40 being a major top. After reaching close to it, EURUSD made a swift and sharp reversal, losing more than 120 pips in just a few minutes. We can not be sure, whether this is the last top for the year or not, because we have not one, but two scenarios and according to the second one, there could be one more push higher left, before the journey to 1.10 begins. However, since both counts are extremely bearish, we do not think that “buying the dips” is a good strategy right now.