Elliott waves analysis – EUR/USD. Expectation of growth in the fifth wave of the initial diagonal triangle remains.

The euro once again failed to grow, remaining at the same price levels as before. For now, this is not critical, but an alternative wave movement scenario begins to emerge. Thus, the current price fluctuations within a certain range may not be an initial diagonal triangle, but a correction in the fourth wave of a downward impulse. In this case, waves a and b of the supposed zigzag are waves 1 and 2, and wave c is correspondingly wave 3 in this impulse.

In this case, the price will not grow and will go down to update the current lows. Therefore, when trading according to the bullish scenario, which is currently the main one, it is necessary to set protective stop loss orders at the local minimum.

Thus, the next few trading days should bring clarity to the current wave picture. Meanwhile, you can try buying at current market values with the goal of catching the movement in the fifth wave of the supposed initial diagonal triangle.