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EUR/USD Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

EUR/USD Elliott Wave technical analysis

Function: Trend.

Mode: Impulsive.

Structure: Gray Wave 3.

Position: Orange Wave 5.

Direction (Next Higher Degrees): Gray Wave 3 started.

Details: Gray wave 2 appears completed; gray wave 3 is now underway.

The daily chart analysis for EURUSD highlights a clear uptrend with impulsive wave action dominating. The pair is currently progressing through gray wave 3, specifically positioned in orange wave 5, indicating an advanced stage of this upward movement.

With gray wave 2 completed, the pair has entered the typically strongest phase—wave 3, known for strong momentum and extended movement. The impulsive nature implies sustained buying interest, with consistent higher highs and higher lows supporting a bullish setup.

The presence of orange wave 5 suggests this could be the final leg of the current intermediate move. However, as gray wave 3 has just started at a higher degree, additional upside remains likely. Traders should monitor for continuation patterns, particularly wave extensions and Fibonacci levels, which are often prominent in third waves.

EUR/USD Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Micro Navy Blue Wave 2.

Position: Within Gray Wave 3.

Direction (Next Higher Degrees): Micro Navy Blue Wave 3.

Details: Micro navy blue wave 1 is complete; micro navy blue wave 2 is currently unfolding.

The 4-hour chart shows EURUSD in a corrective counter-trend phase, developing micro navy blue wave 2 within the ongoing gray wave 3 cycle. This phase marks a short-term pullback in the larger bullish context.

With micro wave 1 completed, the current movement in wave 2 reflects a lack of directional conviction, often forming sideways or shallow corrections. This setup is expected to transition into micro wave 3, which would resume the primary trend to the upside.

Traders should watch closely for signs of the correction ending, such as price stabilizing or forming a reversal structure. Since the pair remains within gray wave 3, this counter-trend activity is likely temporary and could present favorable opportunities once confirmation of trend continuation appears.

EUR/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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