EUR/USD Consolidates Within Classic Elliott Wave Structure

EUR/USD is setting up for a potential bullish breakout as the pair carves out a textbook Wave iv triangle formation. The pair currently trades near 1.1325, having cooled off from its impulsive Wave iii high, and now compresses in a symmetrical triangle—typical of a fourth wave consolidation.

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Wave Count Breakdown (1H Chart)

• Wave (i) and (ii) completed earlier this month, forming the base structure.
• The impulsive surge from April 10–12 forms a clear Wave iii, characterized by strong momentum and large-range candles.
• The current price action is confined within converging trendlines—a contracting triangle—labelled as Wave iv.
• A clean breakout above triangle resistance (~1.1380) would likely confirm the beginning of Wave v, targeting new highs possibly near 1.1550–1.1600, where higher-degree Wave (iii) may complete.

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Key Technical Levels

Support	Resistance	Wave Invalidation
1.1300	1.1380	Below 1.1250 (Wave i territory)

• As per Elliott Wave guidelines, Wave iv must not overlap Wave i, keeping 1.1250 as the invalidation level for this bullish scenario.

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Outlook

A breakout from the current consolidation would mark the start of Wave v, completing the five-wave sequence of Minute Wave (iii). The pattern favors the bulls, but confirmation is key.

Watch for:

• A decisive breakout above triangle resistance with volume
• Retest and hold of 1.1300 as support if the triangle resolves upward

Until the pattern resolves, patience remains the best approach.