On the daily chart of EURUSD we can see a nice rising price activity since start of 2017, which can be labeled as a higher degree wave C) in the making. We know that wave C) is an impulse, which means it must consists out of five sub-waves. Well, here we already see three, which means once the upcoming wave 4 correction unfolds, a new push higher into final wave 5 of C) may start to develop. We also see Fibonacci ratio of 261.8 being touched, which can act as resistance for wave 3 and push prices lower into wave 4.
EURUSD Daily Chart
Below on the 4h chart, we can already see some reversal being made. We can see, that EURUSD has turned sharply lower on Friday following better than expected NFP figures (209k). We have seen a 150 pip drop from the highs, a move that has been technically expected as we saw pair in wave v of an impulse since start of July. Notice that pair fell beneath trading channel connected from 1.1478 and 1.1648 swings which suggests that deeper correction is underway. We see current drop as wave a/i so more weakness will be expected this week, probably down to 1.1648 while market is below 1.1910.
EURUSD 4 Hour Chart