Last week was rich in important financial news coming from both the USA and the EU and the pair managed to form a pattern that for the moment hints at the presence of a double bottom.
It has reached 1.15097 on 29th May 2018 and 1.15429 on the 15th June 2018.
I have already mentioned that I expect the beginning of the second wave of the correction after the impulse rally from 1.03400 (3rd January 2017) to 1.25556 (16th February 2018). For the moment the pair has reached a zone where it could find support and the bars on the H1 and D1 time frames are hinting that said zone could really be a strong support and the double bottom will become a reality. If that is a correct scenario then we could expect a corrective long term move north to form said second wave.
In the alternate scenario there could be a corrective move north from the current level to 1.1680 – 1.1800 and then a new depreciation to 50% and 61.8% Fibo of the impulse and only then there could be a major corrective rally.
In the third scenario the pair will continue depreciating to 50% and 61.8% Fibo of the impulse, then it would begin the correction.