Elliott waves analysis – EUR/USD. A small correction before another wave of decline.

The development of the downward impulse movement continues. At the moment, wave 3 is presumably completed. This is indicated by the reaction from buyers who attempted to stop further decline. Ultimately, something worthwhile is unlikely to come of this. The maximum that euro supporters can expect is a minor rebound and sideways trading for a while, perhaps a day or two.

Thus, wave 4 will develop, followed by another active wave of sales, which will lead to another update of the current local minimum.

While the correction is forming, it is not recommended to open any trading positions. In this situation, it is better to wait for an opportunity to open sell transactions within the development of wave 5.