EUR/USD broke to the down side of a 2 year triangle in December, which has lead to a 14 year low for the pair. The downwards trend is now in the third wave of the pattern, which should see the pair travel a similar distance to the first wave, bringing it to parity. However, it is possible that wave (3) could travel 1.618 times the distance of wave (1), which would put EUR/USD into the region of 0.9600.
GBP/USD has seen a rally to the region of wave 4 (around 1.2800-1.3430), but this is likely to be part of a larger correction. The pair may develop into a flat, which will test the 1.2038, before forming a wave (5) that breaks the 1.2038 level to achieve a new low.
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