EURUSD: Potential Wave Y Downside Setup

Euro / U.S. Dollar Short Editors' picks yesterday 1 9 Grab this chart Grab this chart 3 3 326 On the higher timeframe (3-Day) , an ABC correction appears to have completed towards the end of January. Since then, the market has been developing a potential WXY corrective structure to the downside. Wave W unfolded as a clear three-wave move and appears to be completed. We are currently focusing on Wave X , which is developing as a correction to the upside. This X-wave may already be complete, opening the possibility for the final Wave Y to the downside . Based on the current structure, the potential Wave Y could target the 100%–123.6% extension area of Wave W. On the lower timeframe (4H) , Wave W developed as a clear ABC structure, highlighted in turquoise, while the larger Wave X unfolded as a WXY correction, shown in orange. Within the Wave X structure, we identified a strong reaction around the 50% Fibonacci retracement, providing additional confluence for the current count. This allowed us to define a clear confirmation level on the 4H timeframe. Once price broke below this level, the bearish scenario was confirmed and the setup became valid. The stop loss was placed on the invalidation level of the current Elliott Wave count, keeping the risk defined by the structure itself. The move has since developed as expected, with the position currently around +1.2R in profit . The focus now remains on tracking the structure and managing the risk. wavemaster_ Follow Following WaveMaster- predicting markets with precision ✅ Also on : Elliott Wave Wave Analysis Disclaimer The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use . Elliott Wave Wave Analysis wavemaster_ Follow Following WaveMaster- predicting markets with precision ✅ Also on : Disclaimer The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use .