The EUR/USD chart is displaying a completed 5-wave Elliott impulse structure, suggesting the potential start of a larger corrective move to the downside. Wave 5 appears to have finished after a classic ending diagonal pattern, with price now breaking below the wave 4 support trendline — a strong confirmation of trend exhaustion.
Currently, price is retracing upward towards the 0.5–0.618 Fibonacci retracement zone of the last impulsive leg, around 1.15912–1.16383, which may serve as the final rejection zone for bears to re-enter. This area aligns perfectly with prior support-turned-resistance and is considered the potential reversal pocket.
If price holds below the 1.17869 invalidation level, the structure supports the beginning of an ABC correction or a larger bearish impulse.
Target 1 (T1): 1.14800
Target 2 (T2): 1.13915
Stop Loss (SL): 1.17869
This scenario remains valid as long as the price does not break above 1.17869. A clean break and close above this level would invalidate the bearish setup and suggest a possible wave extension.
Currently, price is retracing upward towards the 0.5–0.618 Fibonacci retracement zone of the last impulsive leg, around 1.15912–1.16383, which may serve as the final rejection zone for bears to re-enter. This area aligns perfectly with prior support-turned-resistance and is considered the potential reversal pocket.
If price holds below the 1.17869 invalidation level, the structure supports the beginning of an ABC correction or a larger bearish impulse.
Target 1 (T1): 1.14800
Target 2 (T2): 1.13915
Stop Loss (SL): 1.17869
This scenario remains valid as long as the price does not break above 1.17869. A clean break and close above this level would invalidate the bearish setup and suggest a possible wave extension.
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We're about to hit 2,000 followers on TradingView! 🚀
Special discount on our pricing plans! 🎉 - t.me/moneydictators
For Premium Research and Elliott wave Guidance: t.me/warlockmd
Special discount on our pricing plans! 🎉 - t.me/moneydictators
For Premium Research and Elliott wave Guidance: t.me/warlockmd
Related publications
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.