The EUR/USD Fourth Wave Correction May Not Be Over Yet

EUR/USD may be forming a fourth (light blue) wave of the fifth subwave of the third main wave of the impulse. That wave counting is probably most clear to those who have some idea of the Elliott Wave Theory but in this case, considering the impulse to the upside and the impulse formations in general it is not hard to recognize it.

If that supposition is correct then the pair may depreciate once again, to 1.2200 but it should not drop below 1.19611, i.e. below the high of the potential first (light blue) wave.

After the end of the fourth wave we could expect another impulse to the upside which will form the final five waves and with that the entire main (red) third wave will end.

There is a possibility, I think, to see a shortened fifth (light blue) wave, in which case the high of the last fifth (light blue) wave won’t reach the high of the third (light blue) wave, but that usually happens during a lot more powerful movements and such a movement seems to be lacking in this impulse.