Elliott waves analysis – EUR/USD. The price is gathering energy for a strong move.

The trading day turned out to be sluggish and dull. Volatility is reduced, and the price is aimlessly drifting within a specific price range, accumulating energy for a breakout. It was previously noted that this could be due to either the development of an initial diagonal triangle or a correction in the fourth wave of a downward impulse.

The bullish scenario is prioritized. Confirmation of this will come in the form of a sharp upward breakout beyond the boundaries of the defined range. This will mark the beginning of the formation of the next, third wave of the anticipated upward impulse.

Before this movement, the price is likely to decline as part of the correction process, so entering trades at current values is not advisable. The optimal strategy would be to buy on a breakout of the local maximum.