Buyers are excessively eager to push the price higher, and this haste is causing interference. The overly steep angle of attack leads to overheating, which needs to be corrected, and that’s what the market is doing. As soon as the price updated the local maximum, selling pressure hit the euro, significantly pushing the price down.
It’s possible that this marks the beginning of an extension in wave 3, with internal waves 1-2 formed. If this is indeed the case, we can expect a renewed onslaught from buyers in the near future, leading to growth in the third wave, roughly as schematically depicted on the provided chart.
In this scenario, buying remains attractive, and the market provides a good opportunity to enter at attractive prices.
Investment idea: Buy at 1.0770, stop loss at 1.0735, take profit at 1.0875.
Origin: FreshForex
