EURUSD broke down last week through 1.1730 level that cause a drop to a new low of the month which impacted some of recent bullish wave structure. What is really important at this stage is that current drop is accelerating which normally occurs in wave three, so we think there can be a new five wave drop in progress right now from 1.1870 since current leg is the strongest bearish reaction since September high. It’s very important to listen to the market and not get to attached to the "bullish idea". That said, we adjusted the structure and are now looking at a three wave drop from the September high which can either be a new five wave drop in progress for new euro bearish cycle, or is going to be just a deep A)-B)-C) pullback. In either case there is room for pair to touch 1.1450-1.1500 area, especially if we consider an important zone on a daily time frame.
EURUSD, 4H
