A conceptual explanation on EURUSD in the quarterly frame, since 1971 :
” The essential underlying tendency of the wave principle is that action in the same direction as the one larger trend develops in five waves, while reaction against the one larger trend develops in three waves, at all degrees of trend.”
In accordance with the concept of the Elliott Wave Principle :
On the quarterly-chart frame, EURUSD completed a five overlapping wave sequence up, as a leading expanding diagonal formation, in summer 2008. Since then, EURUSD is likely to correct the overall bullish pattern in a three-waves sequence [ A-Triangle B-C ] of the same degree.
How far down can the ongoing EURUSD’s bear market be expected to go?
On the sequence [ A-Triangle B-C ], the expected fibo-expansion target for the extreme of wave C, could be around the 1.0283, where establishes an equality ratio between the waves A and C.