EUR/USD Educational Post
Let's make this one educational for everyone to benefit from. As you can see, EUR/USD finished 5 waves up, and according to the Elliott Wave Principle, wave 3 and wave 5 are always impulsive waves that contain 5 waves inside them (i, ii, iii, iv, and v). Wave 4 and Wave iv (inside wave 3) are always in the form of a horizontal stage (a continuation pattern): Wave 4 could be a flag, a triangle, or any sort of consolidation that indicates a continuation.
After finishing 5 waves up, we expect an ABC correction. Usually, the ABC correction reaches the previous wave 4 because according to Elliott, the previous wave 4 is a very critical level. Not breaking the previous wave 4 is a very good sign of the beginning of a new impulsive wave.
Our first target after retesting the previous wave 4 will be the 61.8% Extension level (1.21187). In order to know what levels you should watch, put your Fibonacci Extension level from the bottom of wave 2 to the top of wave 3 then to the bottom of wave 4 and you will get your medium-term levels that EUR/USD or any other pair may reach.
After finishing 5 waves up, we expect an ABC correction. Usually, the ABC correction reaches the previous wave 4 because according to Elliott, the previous wave 4 is a very critical level. Not breaking the previous wave 4 is a very good sign of the beginning of a new impulsive wave.
Our first target after retesting the previous wave 4 will be the 61.8% Extension level (1.21187). In order to know what levels you should watch, put your Fibonacci Extension level from the bottom of wave 2 to the top of wave 3 then to the bottom of wave 4 and you will get your medium-term levels that EUR/USD or any other pair may reach.
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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.