Euro / U.S. DollarShort
EURUSD Elliot Analysis
1. Five-Wave Impulse Pattern:
The chart shows a clear five-wave impulsive move downward, labeled as (i), (ii), (iii), (iv), (v).
This indicates that a downward trend completed its impulsive phase.
2. ABCDE Correction:
The correction phase has begun, marked as (a), (b), (c), (d), (e), forming a potential triangle or contracting pattern.
Each wave within the correction alternates direction, staying confined within the triangle's converging boundaries.
3. Wave (e) in Progress:
Currently, the price appears to be completing wave (e), which is the final leg of the corrective triangle.
The next move could break out of the triangle, resuming the downward trend in alignment with the previous impulsive wave.
4. Future Projection:
If this is a classic Elliott Wave triangle correction, a significant impulsive move is expected to follow, likely continuing the downtrend.
The projected target for the next wave is drawn below, indicating a bearish continuation.
5. Key Levels:
Resistance: The upper trendline of the triangle.
Support: The lower trendline of the triangle.
This setup suggests that traders should watch for a breakout confirmation, as the price is nearing the apex of the triangle. A break below the lower boundary would indicate a bearish continuation, while a breakout above the upper boundary could invalidate this bearish outlook.
The chart shows a clear five-wave impulsive move downward, labeled as (i), (ii), (iii), (iv), (v).
This indicates that a downward trend completed its impulsive phase.
2. ABCDE Correction:
The correction phase has begun, marked as (a), (b), (c), (d), (e), forming a potential triangle or contracting pattern.
Each wave within the correction alternates direction, staying confined within the triangle's converging boundaries.
3. Wave (e) in Progress:
Currently, the price appears to be completing wave (e), which is the final leg of the corrective triangle.
The next move could break out of the triangle, resuming the downward trend in alignment with the previous impulsive wave.
4. Future Projection:
If this is a classic Elliott Wave triangle correction, a significant impulsive move is expected to follow, likely continuing the downtrend.
The projected target for the next wave is drawn below, indicating a bearish continuation.
5. Key Levels:
Resistance: The upper trendline of the triangle.
Support: The lower trendline of the triangle.
This setup suggests that traders should watch for a breakout confirmation, as the price is nearing the apex of the triangle. A break below the lower boundary would indicate a bearish continuation, while a breakout above the upper boundary could invalidate this bearish outlook.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.