Ive been racking my brains to see why EUR keeps rallying even though maximum fib extensions of 686% has been reached; but I think I have a possible solution which makes perfect sense!
IT'S A FLAT CORRECTION!!!!!! (3-3-5)
In the bigger picture from my previous post, I am expecting a bigger correction to close the gap which I think is still happening due to the nature of the previous impulse wave reaching the max fib extensions as I mentioned above signifying a move has finished. In terms of how this current move fits into that scenario, wave (a) and (b) are complete and (c) is currently in play to complete the flat - once (c) wave is done, the bigger wave A will be complete.
We have a few big USD announcements (NFP in particular) this week which could help to push this pair down as EUR is extremely overbought.
Let's see what the next 2 days of trading brings as my shorts are still holding nicely.
Looking for a next 2 key levels to break at 1.12210 and 1.12110.
Let's see what the EU and the US session brings...