EURUSD is turning sharply lower from the 1.1300 level where pair had finally accomplished a big and very long sideways pattern. It was a triangle which is now completed because of a decisive break beneath the blue wave D swing at 1.0847 level three weeks ago. As such we are now even more confident that bears may gain more momentum and in weeks ahead, make a decisive breach below blue wave B. On the Daily chart we can see waves (1) and (2) completed, and if this is the case then more weakness may follow in weeks ahead into wave 3. An overlap with 1.0873 would suggest that price could still be trading in corrective wave (2).
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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.
@ew-forecast, I think wave C of 2 could reach between1.0930 (pullback to broken triangle's downside) and 1.10 (0.618 of 1 and 1.272 of A)
ew-forecast
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Hey @aibek, you're welcome. Well this could happen.. but if you look at the intra-day price action you can see a nice impulsive movement towards the 1.0522. We interpreted this move as minor wave 1.
But let's see what will unfold.
aibek
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@ew-forecast, Thanks for insight. To summarize I added the chart below. My thoughts - yellow labels. Your valuable insight - white.
nikokoev
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What is your opinion for ending diagonal scenario
ew-forecast
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Well @nikokoev, it may be a possiblity but i think that there is to much of a sideways price action going on