Elliott Wave Insight Into EUR/USD’s Recent MovesThe 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.
