On EURUSD we are looking at an EW triangle correction in the making within wave four. A triangle pattern is a five-wave overlapping movement, which usually unfolds prior to the final wave within a bigger trend. In our case, we believe this wave will show up to the upside, but of course, once wave four fully shows up. That said, at the moment we see price unfolding wave d) of four which should be made by three waves up towards the upper side of a range, where the Fibonacci ratio of 61.8 can offer a turning point into wave e).
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EURUSD, 4h
A Triangle is a common 5-wave pattern labelled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves, B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
Elliott wave triangle pattern:
