EURUSD is bearish, having dropped below 1.17. Will price drop further? The following 12 July EURUSD Elliott wave analysis gives a technical insights into EURUSD based on Elliott wave theory.
EURUSD dropped below the 1.1794-1.1737 reversal zone and has dropped further below 1.17. Price has a big chance of dropping further toward 1.15 or even below unless a sudden surge is seen to break above 1.172 intraday resistance level again. In the past updates, we identified 1.185 as a golden resistance above which the bullish move would continue. In as much as price stays below 1.185, the bears are still in control. Besides 1.185 being the resistance holding the end of wave (4), the rally from 1.15 also looks corrective - a double zigzag pattern. In the last update, the chart below was used.
Price is getting below 1.172 and might continue to 1.16 this week. Unless a fast break above 1.1794 is seen, the bearish trend should resume toward 1.16. If price breaks below the channel, we will likely see 1.15 taken out as the bearish trend continues to 1.11 target.
12 July EURUSD Elliott wave analysis: what next?
The chart above shows price breaking away from resistance reversal zone and looking likely to drop further. If the 4th wave ended at 1.185 and the rally from 1.15 is the 2nd sub-wave of wave (5), then price should drop far below 1.15 and to our bearish target at 1.11. A rally back to the zone could jeopardize the expected bearish move and make a whole different scenario. Stay tuned for the next update.
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