On the 4h chart of EURUSD we are observing a three wave move developing in wave 4), with price now trading in sub-wave C. As we can see on the updated count, wave C could be an ending diagonal, a powerful reversal pattern that can cause a sharp reversal lower into wave 5). Decline below wave four swing support and then towards 1.0341 level would suggest that pair is underway to new lows with wave 5).
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal:
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