The euro’s exchange rate against the dollar swiftly plummeted further, failing to complete a coherent zigzag correction. It only managed to halt the decline temporarily. Currently, it appears to be a descending impulse in wave 3 or wave c, if we’re considering a large zigzag with an initial diagonal triangle as wave 1 or wave a.
In this scenario, the following development may occur: the price will once again update the current local minimum, then rise within a correction. The chart presents a variant for the impulse scenario, where wave 3 formation is assumed.
If it’s indeed a zigzag, after another update of the minimum, the price will initiate an impulsive rise, aiming to renew the maximum from March of the current year.
In the current situation, it’s not recommended to make any trading decisions. It’s necessary to wait for clarification and confirmation of the proposed scenario.
Investment Idea: Flat.
Origin: FreshForex
