On the mid-term time frame of EURUSD we see price rising for some time now and unfolding a bullish impulsive movement. Particularley we see price picking up from the low, away from end of Decemeber of 2016 and unfolding a five-wave bullish development with final black wave 5 leading the way. As you know an impulse in Elliott wave theory is a five-wave pattern, that moves in the direction of the trend, it is also quite sharp and has a clear structure with no significant overlaps between the waves.
Below we have an image of an impulse:
(There are no overlaps between the waves( only overlap that usually occures is between waves 1 and 4, but this happens in an Elliott wave ending diagonal)
Now if we add this look to the EURUSD, we can see that price may be trading within its final wave 5, as labeled on the chart. Well this wave 5 is also an impulse and may also unfold five minor waves within itself. At the moment we see only three waves unfolded, meaning more upside can still follow on the EURUSD, before a significant top, ideally at around 1.2400 may be locked in and then a change in trend from bearish to bullish can follow.
EURUSD, Daily
Once the top is locekd in, we would look for a minimum three wave reversal. A confirmation for a bearish reversal would later be a new minor five-wave drop from the high, and a break below the former swing low of 4 at 1.1551 level.
