The EUR/USD exchange rate has been falling since the beginning of 2021. Previously we have mentioned the Elliott Wave pattern where the whole upward structure looks like a possible impulse wave since March 2020. What is more, above 1,2000, where the fifth wave may have ended the ECB were talking about a strong euro which could limit the upward movement.
It seems that as a consequence of the mentioned above, the exchange rate has dropped below the key line drawn through the low of wave 2 and wave 4. In theory it could open a way to a potential target zone at 1,1700 - 1,1600 as wave A within ABC correction. ________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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