Elliott waves analysis – EUR/USD. Impulsive growth with extension in the third wave.

The battle for initiative continued during the last trading session. The dollar attempted a stealthy strike, initially driving the exchange rate to a local minimum. However, it failed to break through the critical level. Buyers quickly realized the situation and pushed the price in the direction favorable to them, reaching a local maximum.

Presumably, this marks the beginning of an extension in wave 3 of the upward impulse. If this is indeed the case, we can expect the development of the third impulse wave within the third but larger in time period. This presents a good opportunity for profit from buying positions.