Despite the general belief that the eurusd is going to parity and below I would like to take my chances on a small bounce and while the risk-reward ratio is not that attractive here, there is still a temporary bottom that may form.
The pair is coming down in a five wave structure on the hourly chart and this means that the whole move from 1.1450 all the way to below 1.07 is nothing but a zigzag and these kind of zigzags are retrace more than our target.
That being said, the apex of the triangle should act as a resistance and it means that on any bounce into the 1.10 level bulls should be careful as the potential for a small reversal is quite high.
All in all, I would say that until ECB and Fed December meetings, the EURUSD pair is going to stay between 1.06 and 1.10, give or take fifty pips higher or lower.
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