EUR/USD reached the resistance zone at 1.2080 – 1.2090 while forming yet three more perfect waves to the upside this time on the monthly time frame. The first three waves are from 8th September 2017 (1.20924) to 7th November 2017 (1.15529).
As we all know however, three waves are a typical correction formation and here we can observe that three waves have formed for a second time.
That makes me think that the correction has not ended.
In my opinion, the pair should form another corrective wave to the downside to 1.1500 – 1.1490 which is 38.2% Fibo of the rally from 26th February 2017 (1.04934) to 8th September 2017 (1.20924). With that the correction should be finished, unless it takes on a more complex form.
In the alternate scenario there will be a rally to 1.22+ which would mean that the correction is over after all.