The euro/U.S. dollar (EUR/USD) currency pair made a new sharp drop in the past couple of hours, away 1.252 level, which we labeled as end of a corrective rise b). Current weakness suggests that a possible flat correction can be in the making on the pair, and that final wave c) of a bigger consolidation is in progress. In a flat we have a 3-3-5 structure, so wave c must be made by five-waves, before support may be seen, and a new bullish reversal comes into play. Possible support near 1.2293/1.2221 former swing highs and lows.
A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.
Elliott wave flat pattern