EURUSD: Is This The Beginning of a New Trend?

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The current EURUSD structure points at a cycle degree impulse, part of a bearish corrective pattern.

After the completion of the intervening wave (x), the market formed a bearish wedge I which was followed by a bullish correction II near 1.1095.

With the decline continuing after the correction, we assume that impulse wave I will replicate further down again in an impulsive manner.

Should this scenario take place, we will look at wave III ending near the 1.085 area. This target respects the tenancy of waves I and III being equal.

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The alternative scenario we keep in mind goes like this; the cycle degree move to the downside is a zigzag a-b-c.

With the impulse a and correction b waves fully completed, we assume that wave c is now under development.

In this projection, EURUSD could continue to decline and find support near the 1.089 area. At that level, cycle degree impulse c will be at the 78.6% of impulse a.  This ratio is quite common in zigzags, so the probability of getting there is quite high.

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