In below article we will describe EUR/USD chart (on different TFs) using Elliott Wave Theory – you can read about waves and the whole strategy here.

EUR/USD

[pullquote align=”right” cite=”” link=”” color=”” class=”” size=””]Get 25USD for free and try Elliott Wave Strategy![/pullquote] In the last week analysis, I was writing about potential beginning of another downward wave. Nothing has changed here. We can assume, that falling to 2014 high consists of four waves. In such assumption, the last sideway move might be a zigzag inside the 4^th wave of the whole downward movements. The second wave was really short, so the fourth one may be longer.

Now we should answer ourselves a question, how the 5^th wave will look like? For now we have three waves and we are still waiting for the 4^th and the 5^th one. If the 5^th wave of higher grade has to be a standard one, in the nearest future we will see a rebound from this year low. Of course there are still other possibilities – on of it is shown below.

We can see here that downward impulse of higher grade was finished on February and now we are inside a correction. Probably, we just ended the A wave and we are approaching end of B wave – after that we should see another upside move inside the C wave. Huge irregular correction should also be considered and that means that after decline under the February’s low we will see an upward wave (C wave).

Such scenario need upward wave to be completed – due to the B wave of irregular correction is a 3 not a 5.

Lots of scenarios, but the chart reaction near the last low will be an indication of nearest future. We should look for long positions entry opportunities during stronger price reaction, counting on the end of declining wave or the beginning of C wave inside irregular correction. Strong decline under the low negates currently upward scenario.