26.04.202112:55 Forex Analysis & Reviews: Wave analysis of EUR/USD on April 26, 2021

EUR/USD, H4 time frame:

Let's look at the situation of the EUR/USD pair today.

The market continues to move inside a large correction wave 4, which takes a bearish triple zigzag form [W]-[X]-[Y]-[X]-[Z].

As expected, bullish traders reached the level of 1.2115 and even pushed the price slightly higher. Therefore, it can be assumed that the formation of the second wave of the bundle [X] is already complete. In this case, we can expect a price decline in the current wave [Z] in the near future.

Now, we will consider the layout of the last section in the hourly chart.

EUR/USD, H1 time frame:

The ascending wave bundle [X] took the form of a double zigzag (W)-(X)-(Y). Wave (Y) took a triple zigzag W-X-Y-XX-Z form, where the second wave is a bundle of XX - a double triple.

We can assume that the market has already started constructing the initial part of the bearish wave [Z]. This wave can take the form of a standard zigzag (A)-(B)-(C), just like the previous active wave (Y).

In the near future, the downward impulse wave (A) is expected to develop. The prices may fall below the level of 1.1992, which was noted by the sub-wave XX.

The approximate scheme of possible future movement is shown on the chart. Currently, one can consider opening sell transactions in order to take a profit at the specified level.