I have attached a possible wave count which if it turned right, we are going to visit the 1.3800 area on EURUSD, which represents a 50% fib level of the big wave 1.3360-1.4280 (considering a high is in place).
As long as market does not violate 1.4240, we are looking at a correction to target below 1.4015. But If 1.4240 gives away, probably another high will be made.
I have also attached a hourly chart which shows a clear rangebound market
The lower band is at 1.4153 significant low and 38.2 fib support of rally 1.4015-1.4240
There is also a double topping at 1.4240.
What are odds now?
Case A: A downside move targets 1.3800 then another upleg (I consider here last and 5th wave impulsive targets 1.45 or 1.46
Case B: Not much odds, a break to the highs and regaining trend strength aiming for same targets.
How can we trade EURUSD next week?
Take my recommendations at your own risk.
Short 1.4145, Target 1.3845, Stop 1.4245. Risk/Reward +3/-1 But you can change these
I would not recommend taking any long trade here. I would wait for a correction/ big dip in the eurusd. As the pair in 1w chart show huge divergence RSI making lower lows and Swing highs making higher highs.
Generally, longing EURUSD on a dip towards 1.3800 would be fine.
Share your thoughts and look at attached pictures.