The expected continuation of the correction did not happen. The price didn’t have time to gain speed for an upward surge before facing another strong selling pressure. The euro’s exchange rate against the dollar started to fall sharply.
It’s possible that we are now observing the development of an extension in the third wave of the downward impulse. In this case, the downward movement may be paused in the near future. This is due to the beginning of the formation of the fourth wave in the extension. The price will then likely trade within a narrow price range for the current trading day, after which another downward breakout will occur.
The approach to acting in this situation should remain the same. It’s recommended to open sell trades upon a breakout of the current local low.
Investment idea: SELL 1.1645, SL 1.1665, TP 1.1600.
Origin: FreshForex
