Elliott Waves: EUR/USD in a correction
|The Euro has seen a significant move to the downside yesterday, and one of the key drivers behind this drop is the widening bond yield differential between the US and Germany. German yields declined much faster compared to US yields, making the US dollar more attractive for investors, which is pushing the EUR/USD pair lower. From an Elliott Wave perspective, we've observed a strong breakdown out of the upward channel that had been in place since mid-September. This indicates that we're likely in a more complex corrective formation, suggesting further downside potential. We can see a retest of the 1.10 area, where we saw strong support a few weeks back.
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