Short-term Elliott Wave analysis suggests that the EURUSD pair ended wave 4 at the 1.127 level. Consequently, the currency pair has resumed its downward trajectory within wave 5. This current decline is actively unfolding as a classic five-wave Elliott Wave impulse structure.

Moving down from the wave 4 peak, initial selling pressure drove wave (i) to a trough at 1.113. A subsequent corrective bounce in wave (ii) stalled and terminated at 1.125. Following that brief recovery, sellers regained control and pushed the pair lower in wave (iii) toward 1.1066. The market then experienced a minor corrective rally in wave (iv) that ended cleanly at 1.11. Currently, the final leg lower in wave (v) is unfolding and should reach completion soon….