A week ago we published an article in our intraday section called “EURUSD confirms bearish reversal”. With a completed five-wave impulse down, we were expecting a three-wave retracement, saying that “prices could return to the zone around 1.3640 before the downtrend in EURUSD resumes.” Here is how the chart of this pair looked like back then.
Now let’s see what has happened during the seven days after the forecast. Spoiler alert: you will be amazed with the accuracy of the Elliott Wave Principle.
As visible, EURUSD made a double zig-zag correction to the north, reaching 1.3650. What happened after that is more interesting. Prices began declining, dropping-off to 1.3587. What is more important is the wave structure of this new down-move. It looks impulsive as well, labeled i-ii-iii-iv-v, so we can presume this is the resumption of the downtrend we were talking about in the previous analysis.
Recommended reading: EURUSD ready to make a move
Now we expect this broken white trend line to serve as a resistance, from which EURUSD could begin the next sell-off in wave 3 of 3/c. If this is the correct count, target around 1.3520 should not be a problem. The invalidation of this intraday scenario is at 1.3650.
