Elliott waves analysis – EUR/USD. Calm after powerful activity.

The dollar seemed to have used its accumulated superpower to strengthen sharply, catching its opponents off guard. For this pair, we observed a steep dive, leading to a return of the price to the previously established minimum. The downward movement was anticipated, but it was not expected to be so abrupt and fast.

Nevertheless, the considered wave scenario is confirmed. Currently, it’s likely that wave 3 of the emerging downward impulse is forming, or it could be wave c in a descending zigzag. In any case, the downward movement still has good potential, but after such sharp jumps, the price either starts to rapidly pull back or enters a sideways movement for some time. For this reason, it is not recommended to open sell trades here and now. It is worth taking a short break and observing further developments.