Intra-day Correction On EURUSD Indicates Lower Levels Ahead

On the EURUSD we are looking at a nice impulsive decline taking place, with price now specifically trading in the fourth wave, ideally unfolding as a triangle correction. A triangle correction is a continuation pattern, that can after its completion push price lower in the final wave five. Resistance for this blue wave 4 correction is around the 38.2 Fibonacci ratio, from where strong bearish pressure may come in play.

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.