EURUSD technical analysis indicates ongoing impulsive decline

The short-term Elliott Wave outlook for the EURUSD currency pair indicates a developing five-wave impulsive decline following a peak on August 21, 2026. After an initial wave (i) concluded at 1.1566 and a corrective rally (wave ii) ended at 1.1654, the pair entered a declining wave (iii).

This wave (iii) is characterized by an internal five-wave sequence. Recent price action shows wave i ending at 1.145, a modest retracement in wave ii to 1.1495, a low in wave iii at 1.1359, and a brief rally in wave iv ending at 1.141. Current indicators suggest wave v of this sequence is nearing completion.

Following the conclusion of this segment, a corrective bounce in wave (iv) is expected to provide temporary relief before the broader downward trend resumes. As long as the 1.1654 pivot remains intact, rallies are projected to fail, reinforcing a bearish outlook with further downside likely.