The EUR/USD Correction Is Developing, The Pair May Drop To 1.1500

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 8^th September 2017 (1.20924) to 7^th 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 26^th February 2017 (1.04934) to 8^th 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.