EUR/USD - stronger dollar after Elliott wave pattern

The USD has strengthened against the euro in recent days. As a consequence, the EUR/USD exchange rate dropped from 1,2340 to 1,2140. However, it seems that this could be only the beginning of a larger corrective movement. If the potential support at 1,2128 is broken the market may fall to the lower limit within the key trend channel. What is more, the next possible target could be located at the low of wave 4 at 1,1612.

From the technical point of view, the correction may appear thanks to the Elliott wave patterns. Since March we have been observing a five wave impulse structure. So currently the wave A within corrective movement may appear.
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Daniel Kostecki, Chief Analyst Conotoxia Ltd.

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