The chart above allows us to put EURUSD's entire progress since March 2020 low in Elliott Wave context. The impressive uptrend which took the currency price from below 1.06 to over 1.21 in nine months looks like a textbook impulse pattern. Its five waves are labeled (i)-(ii)-(iii)-(iv)-(v).
Turbulent Months Ahead for EURUSD What should worry the bulls is that according to the Elliott Wave principle, a three-wave correction follows every impulse. Corrections usually erase all of the fifth wave’s gains. For EURUSD, this means a drop to the wave (iv) support area near 1.15 can be expected once wave (v) is over.
If this analysis is correct, this might just be the worst possible time to be buying EURUSD for a long-term position trade. What's your view on EURUSD? Let me know in the comment. Thanks for reading, Veejahbee.