The EUR/USD has just completed a 5 Wave Elliott Wave formation on May 3rd.
Note the pullback of the 4th wave violates the top of the 1st wave. This creates an expanding Diagonal wedge pattern.
Also note that the distance from 0-3 is the same as 2-5. Another characteristic of this pattern.
Typically, the result of this pattern will be a pull back to the bottom of the 2nd wave or the .786 pull back of the 1-5 wave pattern.
Currently it looks like we could have possibly finished the 1st wave on this move down with a break of the trend line and a turn over of the STOCH.
Moving forward I expect a pull back wave 2 to either 1.131 ( .382) or 1.14268 (.618) levels which would also create a head and shoulders pattern. Then a continuation of the wave pattern down to around 1.0743 or the .768 retrace level predicted by this pattern.
Note the pullback of the 4th wave violates the top of the 1st wave. This creates an expanding Diagonal wedge pattern.
Also note that the distance from 0-3 is the same as 2-5. Another characteristic of this pattern.
Typically, the result of this pattern will be a pull back to the bottom of the 2nd wave or the .786 pull back of the 1-5 wave pattern.
Currently it looks like we could have possibly finished the 1st wave on this move down with a break of the trend line and a turn over of the STOCH.
Moving forward I expect a pull back wave 2 to either 1.131 ( .382) or 1.14268 (.618) levels which would also create a head and shoulders pattern. Then a continuation of the wave pattern down to around 1.0743 or the .768 retrace level predicted by this pattern.