Elliott waves analysis – EUR/USD. Possibility of initial diagonal triangle development.

No expected activity from buyers was seen at the beginning of this week. Instead of an upward movement, the price began to slide down. So far, this decline can be considered as a correction. Then, the ascending movement that was being formed before could take the form of an initial diagonal triangle. This model is a strong signal indicating further prolonged impulsive movement.

However, we need to wait for another wave of growth; until then, it’s better to remain a passive observer and monitor the situation from the sidelines. For those willing to take a risk, they can try buying at the level of 1.0470, setting a protective stop loss at 1.0420.