Patience is now required for another attractive risk/reward trading opportunity. It will most likely arise as soon as we see a 3-wave bounce on the upside.
The EURUSD is most likely approaching another relief bounce. We see a divergence in our short-term strength indicators. Our two preferred scenarios are depicted in the very first chart below. Both show a bounce, which eventually resolves to the downside.
The currency pair still shows overcrowded conditions that need to see further unwinding. Moreover, the technical picture appears to short in terms of time and price progress. The drop from the February high is unlikely to contribute all of the correction to the 2017 upside trend (blue channel).
We are alert for pullbacks to the upside and want to see them reaching into the 23%-38% before another good risk/reward opportunity may get in front of us!
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The pattern changed slightly. Being alert for a potential fade...