FX.co ★ EURUSD wave analysis update for February 8th, 2023.

Green lines- expected path

EURUSD is trading around 1.0730. Earlier today and yesterday price bounced towards 1.0760-1.0770. Current price formation suggests that the recent bounce was a wave 4 counter trend bounce and we should soon resume the downside with the final 5th wave. Our most probable scenario is depicted by the green lines in the 4 hour chart above. EURUSD is expected to make new lows and then reverse to the upside towards 1.08-1.09. Recent price action has cancelled the sequence of lower lows and lower highs. The recent bounce broke above the last high at 1.0744. Short-term support is at 1.0685. A break below this level will confirm the start of the 5th wave down.