What sure looks like a good impulse run seems to have come to a screeching halt. Once it breaks the 1.22 price level, it would trash another small run higher. At the same time the US dollar also seems to have a shortened 5th wave and it is still soaring as I post.
The commercial traders are net short the Euro so until that situation switches, the Euro could make a deep plunge. If a wave 1 in Minor degree has completed, will the Euro fall back to the previous 4th wave of one lesser degree? The Euro may not stop at the 4th wave above because first waves can crash 61% of the entire net move. This could send the Euro down to the 1.12 price range before it’s ready to turn again.
On top of that we must see a decent physically sized correction, completing as well. What could be worse yet, is if this entire rally, was a “C” wave bull market.