The euro’s exchange rate against the dollar rapidly continued its descent, failing to perform a clear zigzag correction. It only had enough strength to temporarily stop the decline. Now, this all appears as a downward impulse in wave 3 or wave c, if we are looking at a large zigzag with an initial diagonal triangle as wave 1 or a.

In this scenario, we might expect the following developments. The price will once again update the current local minimum, then rise as part of a correction. The chart illustrates an option for an impulsive scenario, where the formation of wave 3 is anticipated.

If, however, we are facing a zigzag, then after another update of the minimum, the price will begin an impulsive rise, aiming to update the high from March of this year.

In the current situation, it is not recommended to make any trading decisions; it is necessary to wait for clarification and confirmation of the proposed scenario.

Recommendations: Flat.