EURUSD is hinting at an impulse wave ③ consisting of waves (1)-(2)-(3)-(4)-(5) of the intermediate degree.
The markets are correcting in minor 4 of the 5-wave impulse. The pattern suggests a triangle formation (A)-(B)-(C)-(D)-(E). Currently, we are expecting wave (E) to complete.
A short-term upside move in the corrective wave B could see a decline in the impulse wave C near the 1.173 area.
We could then see the market continuing the upside move to 1.221. At that level, wave 5 will be at 76.4% of minor impulse 3.
An alternative scenario shows impulse wave ③ has already been completed.
We are currently in the infancy of the primary degree correction wave ④.
In the short-term market participants could expect a price decline to 1.149.
At that level wave ④ will be at 38.2% of wave ③.