FX.co ★ Wave analysis on EURUSD for February 9th, 2023.

Blue lines- bearish channel

Violet lines- Fibonacci retracements

EURUSD is trading around 1.0769. EURUSD has finished 5 waves down and has exited the bearish short-term channel. Price has so far retraced 23.6% of the entire decline from recent highs and has potential for a move higher. After a 5 wave structure theory suggests that we should expect a counter trend three wave move. I believe we have started this counter trend wave and the minimum level we should expect the bounce to reach is the 38% Fibonacci retracement at 1.0810. A break above 1.0810 will open the way for a bigger bounce most probably to the 2nd target of 1.0890-1.09. Support is at 1.0708.