Elliott waves analysis – EUR/USD. Price Forms an Initial Diagonal Triangle.

The market has decided to make some adjustments and slightly alter the emerging wave pattern. Initially, everything seemed to be going well and confirming the assumption of an extension in the third wave of the upward impulse. However, after confidently updating the local maximum, a sharp reversal occurred, and the price headed back towards the starting point of the previous bullish wave.

At this point, another possible scenario began to emerge. It’s possible that the upward movement that began on February 14 represents not an impulse but an initial diagonal triangle. This promising rise at the beginning of the last trading day likely marked the completion of the formation of this pattern.

Immediately after that, there was a decline, which is part of a correction. It is expected to be wave ii in the emerging prolonged upward impulse movement.

Therefore, in the near future, the continuation of forming the correction wave is expected, roughly as indicated on the above chart.