With the way the EUR is behaving and holding the 23.6 retracement level of the drop from 4578 to 3434, It is difficult for it to break the 3670-3710 level. This is because there is no half decent structure in this complex corrction from 3780 that can be classified as something that can generate a lot of power upwards. A triangular structure of some sort is expected here if we want to go as high as 4000. Just the same way that a triangular structure was present at 5145 which caused a massive drop. So no triangles then chances of 4000 being reached is deminished for now.
The complex flat correction that is happening from the drop at 3780 level is just a method to waste time to get from the blue trendline on H4 to the red trendline. or if you want to draw your trendlines a different way like on the daily chart, then you can consider the wastage as time to get to the middle trendline in red.
In anyhow the red trendline on H4 may be falsly broken till 3710, but on the daily time frame we are looking for a drop, simply because there is too much hesitation around the solid green trendline, which means that the Green trendline is not the true channel or target that the EUR is aiming at. its more like the final destination is going to be the lower blue trendline before a major retracement or the 2980 level.
Since the red trendline (H4) is a action/reaction line and a strong one, there is a strong possibility of a reversal at 3670-3700 region. For now I dont see higher than 3711 being reached.
Good Luck
The complex flat correction that is happening from the drop at 3780 level is just a method to waste time to get from the blue trendline on H4 to the red trendline. or if you want to draw your trendlines a different way like on the daily chart, then you can consider the wastage as time to get to the middle trendline in red.
In anyhow the red trendline on H4 may be falsly broken till 3710, but on the daily time frame we are looking for a drop, simply because there is too much hesitation around the solid green trendline, which means that the Green trendline is not the true channel or target that the EUR is aiming at. its more like the final destination is going to be the lower blue trendline before a major retracement or the 2980 level.
Since the red trendline (H4) is a action/reaction line and a strong one, there is a strong possibility of a reversal at 3670-3700 region. For now I dont see higher than 3711 being reached.
Good Luck
Attached Image(s) (click to enlarge)
