After such sharp bursts of activity, continuation of the move is often delayed for a prolonged period, or the price even reverses direction. Currently, we observe how the euro, following a strong rally, has started to gradually drift lower.
At this stage, this movement is interpreted as a corrective wave. However, if buyers fail to regain control and allow the price to drop further, the situation could turn unfavorable for them — potentially invalidating the current wave structure we are considering.
On the other hand, if the price resumes its upward movement, a breakout above the local high at 1.1710 would provide a solid opportunity to enter long positions.
Investment idea: BUY 1.1710, SL 1.1685, TP 1.1850.
Origin: FreshForex
