EURUSD Up Trend is Mature | Elliott Wave | Jeremy Wagner

Though EURUSD has made quite the run higher in recent weeks, this up trend is mature at high risk of reversing.

Using Elliott Wave Theory, it is difficult right now to determine if the bullish impulse wave (one of the 5 basic Elliott Wave patterns) that created this up trend is over and if EURUSD is beginning to make a run at new lows (below 1.06) or if we see one more pop higher in wave 5 of the impulse...a finishing wave.

There are 2 labels on the chart:
1. Blue labels (and blue arrow) -- represent a wave count suggesting the high is already in and we are about to see a wave 3 lower. Price rejected today at the 78.6% retracement level of blue wave 1. This would suggest EURUSD rolls over soon. A break below 1.1170 increases the probability of this scenario.

2. Black labels (and black arrows) -- represents a wave count suggesting we are grinding sideways in wave 4 now, with a wave 5 higher that moves slightly beyond 1.1423. Though it touches a new high, it is a terminating wave and then the new down trend would begin.

Good luck!