Despite some bullish price action on stocks in the past few hours, EURUSD is remains unchanged. Pair is slow in a less than 50 pip range which we think its wave four, part of incomplete ending diagonal. Notice that wave four is a traingle, which also support the idea that low is near. Why? Becasue triangle occurs prior to the final move of the larger pattern, which means that break into the low should complete the EUR weakness, at least temporary. Possible low in the near-term is also supported by a RSI reading which is showing a bullish divergence, meaning that bearish momentum is decreasing. Support/bounce zone for the pair is seen at 1.2670.

eur

What is ending diagonal?

An ending diagonal is a special type of wave 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.
  ed • 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