Elliott waves analysis – EUR/USD. Euro needs to rectify the situation.

Buyers failed to capitalize on the opportunity provided, and the initiative was instantly lost. The price collapsed, offering no chance for the scenario of upward impulsive movement to materialize. The only bullish model and correction of the situation for buyers could be the development of a diagonal triangle.

In this case, the recent decline can be seen as a correction in the form of a flat. The trendline from below may indicate that the presumed wave iv is already completed. Hence, a new uptrend could begin. However, rushing into purchases is not advisable. Confirmation is needed in the form of impulsive movement and a corrective pullback, where opportunities for purchases can be sought.