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EUR/USD, H1 time frame:
The formation of the EUR/USD pair hints at the construction of a correction wave 4, which has a complex formation of a triple zigzag [W]-[X]-[Y]-[X]-[Z]. The final part of this pattern is represented on the hourly time frame – the bearish acting sub-wave [Z].
It can be noticed that wave [Z] looks like a double zigzag (W)-(X)-(Y), where sub-waves (W) and (X) are already completely done. The final wave (Y) is still under development, and, unlike the first wave (W), it can take the form of a standard zigzag, which is marked with red sub-waves A-B-C.
It is worth paying attention to the fact that the upward correction wave [B] looks finished and the market has already started to descend within the last wave C.
It is assumed that wave C will take the form of a simple five-wave impulse [1]-[2]-[3]-[4]-[5]. We have schematically shown the internal structure of this impulse on the chart.
Currently, one can consider opening sell deals in order to take profit at the level of 1.1702. This is the previous low, which was formed by the current wave [Y] (not visible on the chart).
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