According to the elliot wave theory and the fibonacci levels, we are facing a movement of retreat of 5 movements at the level of 1.15 where there is a great support there. Although we had been predicting a movement of this nature, there are two factors that highly favor this theory. The first one is that there was a triple ceiling in the value of 1.206, indicating that the market doesn`t want to remain bullish. The third and most important of all is that a movement like the previous one did not represent in what theory and technical analysis is considered a setback. After a movement as large as the previous climb, a recoil movement of at least 38.2% is expected before the fifth wave begins. It had been observed that market behavior was shaping a pattern that is known as flat retracement. Finally, in case this forecast is met and we see a EURUSD in a value of 1.15 again, it will be generating a perfect bullish bat pattern.
