EUR/USD Reached A Resistance Level At 1.12681 And Began A Correction

The divergence on the H4 time frame between the last four highs was also a signal for a possible correction, which, if it reaches its limit, should lead the pair all the way down to 1.0950. When I examine the larger time frames I remain quite convinced to expect a deeper correction and the target at 1.0950 seems realistically reachable.

The correction, however, is just beginning, and we still don’t know what patterns the pair will form. In the next two-three days I hope we will get a clearer idea what to expect of this corrective move to the downside.

Also, despite the expected correction, I don’t think that the upward trend is over in the medium term. After the end of the correction I expect a renewal of the bullish trend which should lead the pair to 1.1450 – 1.1500.