Elliott Wave Charting: The drop from the 1.4578 blue wave (2) top is impulsive in nature, shown as a powerful decline in a blue wave (3) that found a base at 1.3434. Since then, the pair looks to be forming a corrective structure in a blue wave (4), which suggests a downtrend continuation once that upward structure is finished.

A move down could easily be seen from the upper parallel resistance line and 38.2% Fibonacci retracement zone, around 1.3850, where a turning point may appear.

Upward price action is limited at the 1.4228 critical zone where the wave count will be invalidated, since wave (4) must not overlap the territory of a wave (1). In this case, the decline from the 1.5143 would be just a corrective A-B-C move, which is our alternative wave count for now.

TheLFB Charting: EUR/USD Daily View

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