The EUR/USD chart has delivered a clean Elliott Wave sequence, which helps us forecast what may come next.
Wave Count Overview
The structure leading up to the high shows a clear five-wave impulsive rally, ending at Wave 3 in yellow.
This was followed by a corrective A-B-C zigzag, with:
A sharp Wave A down
A shallow Wave B bounce
A clean Wave C drop, matching Wave A in length, bottoming at the 100% Fibonacci projection around 1.10711.
Why This Matters
Elliott Wave theory tells us that a completed zigzag correction—especially when followed by a consolidation like a triangle—often leads to a continuation in the direction of the larger trend. If this consolidation is indeed a Wave 4 triangle, Wave 5 may soon emerge with strength.
What to Watch For:
Breakout from the current flag/triangle pattern.
Confirmation via price closing above the Wave B high.
Strong bullish momentum and rising volume as signs Wave 5 is kicking off.
Conclusion
EUR/USD may be gearing up for a Wave 5 breakout, following a classic zigzag correction and potential triangle consolidation. If this pattern breaks to the upside, it could offer a great trend continuation trade opportunity.
Wave Count Overview
The structure leading up to the high shows a clear five-wave impulsive rally, ending at Wave 3 in yellow.
This was followed by a corrective A-B-C zigzag, with:
A sharp Wave A down
A shallow Wave B bounce
A clean Wave C drop, matching Wave A in length, bottoming at the 100% Fibonacci projection around 1.10711.
Why This Matters
Elliott Wave theory tells us that a completed zigzag correction—especially when followed by a consolidation like a triangle—often leads to a continuation in the direction of the larger trend. If this consolidation is indeed a Wave 4 triangle, Wave 5 may soon emerge with strength.
What to Watch For:
Breakout from the current flag/triangle pattern.
Confirmation via price closing above the Wave B high.
Strong bullish momentum and rising volume as signs Wave 5 is kicking off.
Conclusion
EUR/USD may be gearing up for a Wave 5 breakout, following a classic zigzag correction and potential triangle consolidation. If this pattern breaks to the upside, it could offer a great trend continuation trade opportunity.
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.
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.