EUR/USD Educational Post

Let's make this one educational for everyone to benefit from. As you can see, EUR/USD finished 5 waves up, and according to the Elliott Wave Principle, wave 3 and wave 5 are always impulsive waves that contain 5 waves inside them (i, ii, iii, iv, and v). Wave 4 and Wave iv (inside wave 3) are always in the form of a horizontal stage (a continuation pattern): Wave 4 could be a flag, a triangle, or any sort of consolidation that indicates a continuation.

After finishing 5 waves up, we expect an ABC correction. Usually, the ABC correction reaches the previous wave 4 because according to Elliott, the previous wave 4 is a very critical level. Not breaking the previous wave 4 is a very good sign of the beginning of a new impulsive wave.

Our first target after retesting the previous wave 4 will be the 61.8% Extension level (1.21187). In order to know what levels you should watch, put your Fibonacci Extension level from the bottom of wave 2 to the top of wave 3 then to the bottom of wave 4 and you will get your medium-term levels that EUR/USD or any other pair may reach.