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Wave analysis

02.07.202113:00 Forex Analysis & Reviews: Wave analysis for EUR/USD on July 2, 2021

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EUR/USD, H1 time frame:

Let's consider the situation of the main currency pair EUR/USD.

The formation of a correction wave 4, which has an internal structure of a triple zigzag [W]-[X]-[Y]-[X]-[Z], can be observed. The final sub-wave of the specified formation, which is the bearish acting sub-wave [Z], is visible in the last section of the chart.

Wave [Z] hints at a double zigzag (W)-(X)-(Y), in which the sub-waves (W) and (X) are already fully done. The final wave (Y) is still under development and will most likely take the form of a standard zigzag, which is marked with red sub-waves A-B-C.

It seems that the upward correction wave B is fully completed with sub-waves [W]-[X]-[Y]. Not so long ago, the price started to gradually decline in wave C, which may take the form of a standard five-wave impulse [1]-[2]-[3]-[4]-[5] based on the initial part. This impulse looks formed into 3/5 parts.

In this case, the downward movement may continue in the next trading days in sub-waves [4] and [5], as shown in the chart.

Currently, one can consider opening sell deals in order to take profit at 1.1702, which is the previous low.

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