Elliott Wave View: EURUSD Should Continue Lower

Short-term Elliott wave view in EURUSD suggests the decline from May 25, 2021 peak is unfolding as a 5 waves impulse Elliott Wave structure. Down from May 25, wave (1) ended at 1.1664 and rally in wave (2) ended at 1.1909. Pair then extends lower in wave (3) towards 1.1522 and bounce in wave (4) ended at 1.1692. Internal of wave (4) subdivided into a double three structure. Up from wave (3), wave W ended at 1.1669, wave X ended at 1.1583, and wave Y ended at 1.1692.

Wave (5) is currently in progress lower. Internal of wave (5) unfolded as an impulse in lesser degree. Down from wave (4), wave 1 ended at 1.1533 and bounce in wave 2 ended at 1.16164. Internal of wave 2 unfolded as a zigzag structure where wave ((a)) ended at 1.1613, wave ((b)) ended at 1.156, and wave ((c)) ended at 1.16164. Pair has resumed lower in wave 3. Down from wave 2, wave ((i)) ended at 1.1526. Near term, while wave ((ii)) rally fails below 1.16164, and more importantly below 1.1692, expect pair to extend lower. Potential target lower is 100% – 161.8% Fibonacci extension of wave 1 at 1.1359 – 1.145.