The EURUSD seems to be developing a large bullish impulse. This consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5). Intermediate correction (4) has a complex internal structure of a triple W-X-Y-X-Z zigzag.
At the end of May, the second minor intervening wave X was completed. Then a bearish market movement in wave Z followed. Wave Z is similar to a triple zigzag consisting of five-minute sub-waves.
The first four-minute sub-waves are fully completed and the development of the last fifth sub-wave has now begun.
In the near future, the formation of a minute (a)-(b)-(c) zigzag is likely, which can complete the minute wave ⓩ near 1.1600. At that level, minor wave Z will be at 123.6% of minor actionary wave Y.
An alternative scenario shows the completion of the current minute wave ⓨ, which is part of the minor wave Z.
Thus, if the market follows this scenario, in the near future the currency pair could increase in price in the intervening wave ⓧ. It is possible that it will be equal to 61.8% of wave ⓨ, which means that it will end near the level of 1.2048.
Following the formation of wave ⓧ, a decline is likely in wave ⓩ to the level of 1.1600.
Does your trading knowledge measure up? Check out our Learn Forex Basics!
Source: https://www.orbex.com/blog/en/2021/07/eurusd-intermediate-correction-4-to-end-near-1-1600
