The bearish outlook :
The Euro’s decline from the 1.3993 high on May 8, 2014 has the potential to be extended through the lower levels, to complete the Primary wave C (circle) of an A – Triangle B – C formation.
Under this bearish view, the five waves down could be labeled as Intermediate wave (1), and the recent three waves up as corrective wave (2), which has likely remained in progress. In this case, Intermediate waves (3), (4) and (5) to the downside lie ahead prior to the end of Primary wave C (circle).
Alt : As a bullish alternative, the Intermediate wave C (circle) and hence overall A – Triangle B – C formation could have been completed. However, this alternate possibility remains in the second priority until a five-waves sequence is formed to the upside, to marks return of the trend.