Elliott waves analysis – EUR/USD. The Formation of Corrective Waves.

The current situation aligns well with the previously suggested wave scenario. After a significant impulsive rise, the price has logically started to pull back. The formed upward impulse is considered wave 1 in the emerging bullish impulse of a higher time frame. The observed pullback marks the beginning of the development of corrective wave 2, which is expected to take the form of a simple zigzag. Currently, the first part of this zigzag is formed, followed by some sideways movement and another impulsive downward move.

However, the situation is not yet conducive to entering trades. Today’s trading day will likely be spent forming the indicated sideways movement. After this, a favorable situation for entering sell trades may emerge.