The euro/U.S. dollar (EUR/USD) currency pair is at new highs, back above 1.1000 which we assumed would happen based on another strong move up yesterday that had a quality of an impulsive price action. Investors and traders are becoming increasingly bullish on the euro, but we see the pair in fifth waves, including five sub waves up from 1.0840; so, despite a strong leg up there is a chance for limited upside. Technically the market will be expecting to make a three-wave retracement to the downside. Keep an eye on current red Wave v) that may look for a first resistance at the upper line of an Elliott Wave channel.

EUR/USD, 1 hour