Based on a comprehensive analysis of the provided charts, the EUR/USD currency pair appears to be at a critical juncture, signaling a short-term bearish correction within a broader long-term bullish framework.

Long-Term Bullish Outlook: 2-Week & 2-Day Analysis

The wider-angle charts establish a clear bullish trajectory for the medium to long term.

2-Week Chart: This macro view indicates that the EUR/USD completed a major corrective pattern, labeled as Wave (II), in late 2022. Subsequently, the price has initiated a new impulsive sequence. The price action from early 2023 to early 2025 is identified as a large Wave I followed by a Wave II correction. The pair is now believed to be in the initial stages of a powerful Wave III, which in Elliott Wave theory is typically the longest and strongest wave. The current upward movement is labeled as the beginning of this significant rally.

2-Day Chart: Zooming in, this chart details the structure following the major Wave II low in early 2025. The rally from that low is a complete five-wave impulse, labeled as Wave (1). This was followed by a three-wave corrective pullback, labeled as Wave (2). According to this count, Wave (2) has either completed or is very close to completion, setting the stage for the highly anticipated Wave (3) to begin, which would propel the pair to new highs.

Short-Term Bearish Correction: 3-Hour Analysis

The short-term 3-hour chart provides a high-resolution view of the current corrective phase and suggests it is not yet complete. This chart focuses on the pullback after the peak of the impulse wave i (which corresponds to Wave (1) on the 2-day chart). This correction is labeled as wave ii (corresponding to Wave (2) on the 2-day chart) and is unfolding in a classic A-B-C structure. The analysis indicates that waves (a) and (b) of this correction are finished. The price is now in the final (c) leg down. Crucially, this (c) wave is itself an impulse wave composed of five sub-waves. The chart suggests that sub-waves i and ii of (c) are complete, and the market is on the verge of starting sub-wave iii. This sub-wave is typically the most aggressive part of a decline.

This detailed view implies that the EUR/USD is poised for another significant drop in the immediate future to complete the larger Wave (2) correction. The chart projects a potential target for the completion of this move near the 1.1350 level.

Indicator Analysis & Confirmation

The fourth chart, displaying price alongside momentum and sentiment indicators, corroborates the short-term bearish thesis.

• Price Action & Momentum: The price peaked on July 1, 2025, at 1.1830. The Z-Score oscillator at the top was in its “overbought” green zone during this peak and has since crossed down, signaling a distinct loss of upward momentum.
• Sentiment: The bottom indicator shows that while overall sentiment remains positive , the negative sentiment has been increasing in magnitude since the early July peak. This reflects growing bearish pressure consistent with a corrective pullback.

Conclusion & Synthesis

The comprehensive Elliott Wave analysis across multiple timeframes presents a coherent narrative. While the long-term outlook for EUR/USD is decidedly bullish, with the pair expected to enter a strong upward trend (Wave III), the immediate path appears to be lower.

The short-term wave count and confirming technical indicators strongly suggest that the current correction (Wave 2) has one more significant leg down. Traders should be prepared for near-term weakness and a potential decline toward the 1.1350 area. Once this final corrective wave is complete, the broader bullish trend is expected to resume with significant force.

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Disclaimer:

The analysis provided is for educational and informational purposes only. It should not be considered financial advice. Trading in financial markets involves a substantial risk of loss. It is possible to lose some or all of your invested capital. The analysis is based on historical price data and technical indicators. Past performance is not indicative of future results. Market conditions can change rapidly, and any trading strategy can become unprofitable. Any trading decisions you make are solely your responsibility. You should carefully consider your financial situation, risk tolerance, and investment objectives before making any trades. It is essential to conduct your own research and analysis before making any trading decisions. Do not rely solely on the information provided here. There is no guarantee that the trading strategy described will be profitable. You use this information at your own risk. We are not liable for any losses incurred as a result of using this information. In essence: Trading is risky. This analysis is just one perspective. Do your homework, understand the risks, and only trade with money you can afford to lose