EURUSD Entering the Belly of the Down Trend

Using Elliott Wave as our guide, EURUSD appears to be entering the belly of the down trend and correction. There are wave relationships near the current price so a bounce may develop.

As we are in a bearish impulse wave pattern, if this bounce develops, I am looking at the bounce as being wave iv of (iii). I anticipate the bounce will be shallow and EURUSD eventually works down to 1.1850 to finalize (iii).

Bottom line, look for continued USD strength. It will be interesting to see how this USD strength affects main markets like equities and gold.

Comment:

Pretty stiff rally today. The rally reached a common stopping point for wave iv. Therefore, if EURUSD softens next week it will add further evidence of a fourth wave.