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EUR/USD, daily time frame:
Let's start our market review with the daily time frame for a more accurate forecast for the EUR/USD pair.
It can be seen here that the pair is forming a corrective trend. It is assumed that a global triple zigzag is being formed in the long term. Looking at the chart, its middle part is shown.
The downward wave [Y] was completed in 2016, followed by the beginning of the formation of the ascending zigzag wave [X]. Its construction continues to this day. The wave [X] consists of three main sub-waves – the impulses (A) and (C) and the correction (B). The correction wave (B) is a bearish triple zigzag. In turn, the impulse wave (C) is not yet fully done, but its fourth part is being formed.
Now, let's consider the pattern of the correctional wave 4 on the H4 time frame.
EUR/USD, H4 time frame:
The formation of the correction wave 4 began at the beginning of this year. Its internal structure hints at a double zigzag [W]-[X]-[Y]. Apparently, the first two parts of this double zigzag have fully completed, that is, the acting sub-wave [W] and the bundle wave [X]. Both of these waves are standard zigzags.
At the moment, a downward movement and the development of the current wave [Y] can be observed in the market. It may be complex in its structure and take the form of a double zigzag (W)-(X)-(Y), where the sub-waves (W) and (X) have already completed their pattern.
It is assumed that the price will fall down in the current wave (Y) to the area of the previous low of 1.1706, formed by wave [W] in the near future.
Let's take a look at the pattern of wave (Y) on the hourly time frame.
EUR/USD, H1 time frame:
The formation of the wave (Y) began after the end of the active sub-wave (W), which took the form of a bearish zigzag, and the bundle wave (X). Most likely, the wave (Y) will take the form of a double zigzag W-X-Y.
It seems that wave (W) is currently under development, which is close to completion. It consists of sub-waves [W]-[X]-[Y]. In the near future, the market will complete the last wave [Y], which will be followed by a small increase within the wave of the X bundle. A sideways price movement is also possible. After that, the price can decline again in a downward wave Y, namely to the level of 1.1706.
Currently, one can consider opening short positions in order to take profit at the end of the correction wave 4.
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