It's been a long time since the EURUSD pair was in a correction mode. I am sharing Elliot's wave analysis for a possible trade setup on the long side.

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On the 23rd of March 2020, EURUSD Pair has made a bottom and started its 1st move upwards with positive divergence on the chart. After an impulse run, the price retraced to the 78.6% retracement level that confirmed the wave 2 structure. Since April 6th, 2020, the market went into consolidation and a break out of the trading range happened on the 28th of May 2020 thus providing a new impulsive move.

The new impulsive move was the 3rd wave which went into an extended move and ended at the 3.414 extensions on the 6th of January 2021. There is a retracement that happened that ultimately made the 4th wave end at 38.2% retracement on the 31st of March 2021. The 4th Wave also respected 0-2 trendline. The 5th wave ended as a truncation wave on the 25th of May 2021. After that, the price went into Zig-Zag correction pattern ABC, where the A wave broke the 2-4 trendline. The B wave retraced up to 38.2% retracement and now the C wave is on. Price is now hovering between 61.8% -78.6% retracement levels of the overall structure.

The price also entered the Demand zone marked on the chart. There is a high possibility of long trade emerging. We need to wait for further confirmation in order to go long on the EURUSD pair.

The chart is hereby inserted for your reference.

(Click on image to enlarge)