EURUSD to Correct Itself in the Short Term

A minor bearish correction may be due on the EURUSD in the short term, provided that the current pullback peaks below point 5.

The pair established a 1-5 impulse wave pattern recently, as postulated by the Elliott Wave Theory. That is why an ABC correction is expected to follow next. The latter could fall as low as the 61.8 per cent Fibonacci retracement level.

It is interesting to point out that the 20-day MA (in red) is threading near the 23.6 per cent Fibonacci, the 50-day MA (in green) is converging with the 38.2 per cent Fibonacci, and the 100-day MA (in blue) has just crossed above the 61.8 per cent Fibonacci.