Elliott waves analysis – EUR/USD. A prolonged impulsive decline may have begun.

Fears about the development of any abnormal price jumps proved to be unfounded. The price clearly reacted to the voting results, making a leap in one direction. The election results were very favorable for the dollar, leading to a strong downward movement.

It appears that the upward correction that was forming earlier has ended, taking the form of a zigzag with a final diagonal triangle in wave c. This model may be wave 2 in an emerging downward impulsive movement. We may then see the price continue to move down within the development of wave 3 of the same large impulse.