As you can see from the chart, EURUSD traded lower in five waves from March 2020 high, labeled (i)-(v). Sub-waves of wave (iii) are also visible.
Five-wave pattern is known as impulse and indicates the direction of a larger trend, and once an impulse is completed a pullback in the opposite direction follows.
In EURUSD's case, the pullback seems to be unfolding as a double zigzag pattern and not completed yet.
From wave (x) low on the chart, EURUSD rally in an overlapping five waves sequence in wave "a" - knows as a leading diagonal.
Leading diagonal points in the direction of a larger trend; which means that we could expect the price to move higher after the correction.
The correction in wave b seems completed and also retest 78.6 Fibonacci level. Price has the potential to move higher to complete wave c of the second zigzag.
What's your view on EURUSD?
Five-wave pattern is known as impulse and indicates the direction of a larger trend, and once an impulse is completed a pullback in the opposite direction follows.
In EURUSD's case, the pullback seems to be unfolding as a double zigzag pattern and not completed yet.
From wave (x) low on the chart, EURUSD rally in an overlapping five waves sequence in wave "a" - knows as a leading diagonal.
Leading diagonal points in the direction of a larger trend; which means that we could expect the price to move higher after the correction.
The correction in wave b seems completed and also retest 78.6 Fibonacci level. Price has the potential to move higher to complete wave c of the second zigzag.
What's your view on EURUSD?
