EURUSD Completing a 1-5 Impulse Wave Pattern

The price action of the EURUSD pair appears to be developing a 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory. Recently, it completed the second impulse leg (2-3) and is currently in the process of establishing the second retracement leg (3-4). It could reach as high as the 61.8 per cent Fibonacci retracement level before the pullback is completed.

Afterwards, the price action would likely continue establishing the final impulse leg (4-5), which could probe the previous swing low at 1.16650.