EURUSD Undergoing A Sharp Fall From The Highs; More Weakness Can Follow

EURUSD touched a new high two days ago ahead of FOMC press conference, but then it turned sharply lower from 1.1300 area as expected. An updated count shows an ending diagonal on 4h chart placed in wave C; a powerful reversal pattern that can cause a strong drop for this month, ideally in impulsive fashion. That being said, current drop can be wave 1)/A as part of a minimum three wave decline.

If you want more updates daily on different markets (FX, GOLD, OIL, SILVER, BITCOIN) then now can be your chance.
Get 50% discount on first 2 months. -->



eurusd, 4hp

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

  • structure is 3-3-3-3-3
  • a wedge shape within two converging lines
  • wave 4 must trade into a territory of a wave 1
  • appears primarily in the fifth wave position, in the C wave position of A-B- C and in double or triple threes as the final “C” wave

EW ending diagonal

Disclosure: Please be informed that information we provide is NOT atrading recommendation or investment advice. All our work is for educational purposes only.