Elliott Wave View: EURUSD Further Downside Likely

Short-term Elliott wave view in EURUSD suggests that the cycle from 24 May 2021 high is unfolding in a zigzag correction. The structure remains incomplete favoring more downside extension. Up from that high, the pair has ended the first leg in wave (A) at 1.1752 low. Then wave (B) pullback ended at 1.1908 high and the pair continued lower.

Down from wave (B), wave (C) remains in progress in lesser degree 5 waves structure. Wave 1 of (C) is taking the form of a leading diagonal structure. The wave ((i)) of 1 ended at 1.1706 low. Wave ((ii)) pullback ended at 18.05 high. Wave ((iii)) drop finished at 1.1694 and wave ((iv)) rally ended at 1.1743. Near-term, as far as bounces remain below wave ((iv)) high at 1.1743, expect EURUSD to extend lower within wave ((v)) and complete wave 1 in red. Afterwards, we should look for a corrective bounce in at least 3 swings to complete wave 2 before see further downside in an impulse structure within wave (C). Potential target lower in wave (C) is 100% – 123.6% fibonacci extension from January 6, 2021 high towards 1.147 – 1.162 area.