EUR/USD finished 5 waves down, broke the falling wedge to the upside, and managed to retest the previous wave 4 at 1.18073. According to the Elliott Wave Principle, the previous wave 4 is a very critical zone, and not breaking it will cause a move back to the downside.
Additionally, after recording a new low at 1.1660, EUR/USD went 5 waves up retesting 1.18200, and since it wasn't able to break it, I expect to see a small corrective cycle towards retesting the other previous wave 4 at 1.17442 before continuing its way up for new highs.
This is a great example of how you can combine E.W. with Price Action.
From a price action perspective, when the price breaks a falling wedge, our target is always the beginning of the wedge which here is at 1.19000. And since a small correction is expected towards 1.17442 before continuing its way for more upside, this small correction could be considered as Big Wave 2 before starting with Big wave 3 towards 1.19000 in order to reach the beginning of the wedge.
Hope you like this analysis on EUR/USD. Don't forget to manage your risk. Good luck!
Additionally, after recording a new low at 1.1660, EUR/USD went 5 waves up retesting 1.18200, and since it wasn't able to break it, I expect to see a small corrective cycle towards retesting the other previous wave 4 at 1.17442 before continuing its way up for new highs.
This is a great example of how you can combine E.W. with Price Action.
From a price action perspective, when the price breaks a falling wedge, our target is always the beginning of the wedge which here is at 1.19000. And since a small correction is expected towards 1.17442 before continuing its way for more upside, this small correction could be considered as Big Wave 2 before starting with Big wave 3 towards 1.19000 in order to reach the beginning of the wedge.
Hope you like this analysis on EUR/USD. Don't forget to manage your risk. Good luck!