EUR/USD Is Forming A Textbook Trend

As it often happens, the market has the final word regardless of traders’ plans. This seems to apply especially to the EUR/USD pair.

It reached a high at 1.2556 and for four months corrected exactly to 50% Fibo of that move north from 1.03400 (01st  January 2017) to 1.25556 (17th  February 2018, the low being at 1.15097 (reached on the 29th May 2018).

With that we could accept that wave A from the correction is over and we should expect the development of wave B. It is possible for that corrective wave to return the pair all the way to 1.2380 – 1.2400. After that we can expect the development of wave C, which may lead to a depreciation to 68.2% Fibo (at 1.1200) or even lower.

The good news is that according to the Elliott Wave Theory five waves don’t develop on their own. Considering that we have already five developed impulse waves, after the end of the correction we should see five more. I am mentioning that because usually out of all figures we observe on the charts the five impulse waves are tend to be the easiest to trade and bring the largest profits.