Today’s decline suggests that wave ((i)) might have been in place as a leading diagonal. If correct, we’re going to have a second-wave correction in the short term. Even so, the opportunity to have a third-wave advance remains in force.
The market is consolidating after Friday’s advance. In this case, as long as the price remains above 1.3678, the opportunity to have a further upward price movement will be in force. Therefore, the pair should break the last local high shortly.
The market went through the high of wave ((i)), so a second-wave correction is likely over. If correct, the market should continue rising agains 1.3678 in the short term.
There’s a decline, which is likely a part of wave ((ii)). If correct, we could see the price a little bit lower before a third-wave advance begins. At the same time, as long as the pair is below yesterday’s high, the bullish scenario will be at risk.
There’s an upward impulse, which is supposed to be wave ((i)). Wave ((ii)) might have been in place, so the market is likely going to begin unfolding a third-wave advance. The nearest critical level is 1.3696.
It seems like wave ((i)) is over, which confirms the bullish scenario. In this case, we’re going to have a second-wave correction in the coming hours. A third-wave advance should begin a little later on. The main critical level is the low of wave 2 at 1.3601.
Today’s advance suggests that wave 2 might have been in place in the form of a zigzag. If correct, we’re going to have the rest of wave ((i)) in the coming hours. A second-wave correction should begin a little later on.
The bearish scenario remains at risk. As long as the market is above 1.3571, the outlook will be in force. A break of this level will bring forward the idea that wave (4) is still underway.
The price is still declining, so the bullish scenario is getting risky. At the same time, as long as the price remains above 1.3571, we can’t rule out that wave 2 is at the late stages. However, we need to see a fifth-wave advance to boost the idea.
The 0.618 retracement level has acted as support, but considering the current decline on EURUSD, we can’t rule out a further unfolding of wave ((c)). If the price breaks 0.618, there’ll be a green light to achieve the 0.786 level.