EURUSD Zigzag Correction Points to Elliott Wave Support at 1.148–1.160
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Navigating the Euro's Corrective Path
The EURUSD currency pair is currently engaged in a complex corrective sequence, a pattern that often signals a temporary pause or reversal within a larger trend. This particular formation, identified as a zigzag structure, began its descent from a high point reached on April 17, 2026. The initial downward thrust, labeled as wave A, concluded its movement at the 1.1655 level, marking the first leg of this corrective phase.
Following this initial decline, the market saw a counter-trend rally. This upward movement, designated as wave B, propelled the pair to a high of 1.1796. This price action, clearly observable on the one-hour trading charts, represents the retracement phase before the next leg of the correction unfolds.
Unpacking the Wave C Decline
From the 1.1796 peak, the pair commenced its wave C leg, initiating a renewed downward trajectory. This segment is characterized by an internal subdivision into five smaller wave impulses, a hallmark of a standard zigzag correction according to Elliott Wave principles. This detailed structure reinforces the notion that the current price action is indeed corrective rather than indicative of a sustained trend reversal.
Within this wave C, the smaller wave ((i)) completed at 1.1722. A subsequent minor bounce occurred, forming wave ((ii)) which reached 1.1788. The bears then regained control, pushing the price lower in wave ((iii)) to touch 1.1608. Currently, traders are observing a rally in wave ((iv)).
Crucially, traders should be aware of potential resistance emerging in the 1.168–1.171 zone. This area is anticipated to act as a barrier, where selling interest may reassert itself. As long as the pivotal resistance level at 1.18 remains intact, any upward movements are expected to be capped, likely concluding within three or seven smaller swings. This suggests the overall bearish momentum within wave C is poised to continue.
Projecting Future Price Action
To gauge the potential downside targets for wave C, analysts often employ Fibonacci extension tools. Applying this methodology to the initial wave A provides a projected range for wave C. Specifically, the 100% to 161.8% Fibonacci extension levels offer a widely accepted measurement for the likely endpoint of this corrective wave.
This calculation points to a significant support zone between 1.148 and 1.160. Within this region, a rebound is anticipated as buyers step in to defend these levels. Such a bounce could potentially lead to a new price peak exceeding the April 17 high, or at the very least, initiate a more substantial three-wave upward correction against the larger downtrend.
Reading Between the Lines
The unfolding zigzag pattern in EURUSD from the April 17, 2026 high suggests a period of consolidation and potential volatility. The identified support cluster between 1.148 and 1.160 represents a critical area where market participants will be watching for signs of renewed buying interest. However, the prevailing bearish bias within wave C, capped by the 1.18 resistance, indicates that any rallies should be treated with caution by traders anticipating a continuation of the decline.
The underlying structure confirms that this is a corrective move. While wave C aims for the 1.148–1.160 zone, the subsequent market reaction at these levels will be key. A strong reversal could signal a return to the prior uptrend, whereas a failure to hold support might indicate a deeper, more prolonged decline, potentially breaking below the current projected targets.
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