EURUSD fell sharply lower last week with accelerating price action beneath 1.1000 level which confirms a continuation of a downtrend. We see huge possibility for wave three in progress that is part of a big five wave move within wave five that began unfolding at the end of September, away from 1.1700. Based on current very strong bearish momentum we may see extension towards 1.0400-1.0500 area this year, where we see Fibonacci levels for wave three. For now invalidation level remains at 1.1500, as long it will hold trend is down.

EURUSD, Daily

On the 4th chart, pair fell sharply last week through 1.1300 level and even finished trading on Friday beneath 1.1081 which was our minimum objective target. But because of very strong downside momentum with impulsive price action we think that pair will fall much deeper. As such, any bounce in the meantime, will be corrective. First one may already occur this week with wave four retracement back to around 1.1080-1.1130 resistance from where we would expect more downside. Generally speaking we see pair now in strong bearish mode, with first five waves from 1.1496 headed to 1.0800/1.0900 area.

EURUSD, 4H