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EURUSD is much lower since our past update when we highlighted potential bearish view when price was at the channel support line (CLICK HERE). So far we can see nice break lower, so short-term impulse lower is underway that can belong to wave A or possibly even wave C of flat. In both cases there is room for more weakness to around 1.05 support of 2023.

Traders can be looking for next leg lower after a bounce in wave four, which may occur in next few sessions as current dollar buying may slow down after US debt ceiling has been lifted. Its a buy the rumor sell the news impact. However, more dollar strength can then return, after EURUSD rallies, possibly later this week when the US will also announce the NFP number which is another important economic data that should give more details if Fed is ready to pause or no. 

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