24.05.202113:40 Forex Analysis & Reviews: Wave analysis for EUR/USD on May 24, 2021

EUR/USD, H4 time frame:

It is assumed that we are currently in correctional wave 4. Its internal structure hints at the triple zigzag [W]-[X]-[Y]-[X]-[Z]. Perhaps, the formation of the bundle [X] is already over. Its final impulse wave (C) consists of five sub-waves 1-2-3-4-5, and it seems that all of them are already completed.

Therefore, the price is expected to move in a downward direction, forming a bearish wave [Z] soon.

Now, let's look at the last section of the chart on the hourly time frame.

EUR/USD, H1 time frame:

It is believed that the acting wave [Z] will be standard in its structure and will consist of three simple sub-waves: impulses (A) and (C) and correction (B). This is schematically demonstrated on the chart.

Now, let's pay attention to the emerging wave (A), which is likely to take the form of a 1-2-3-4-5 bearish impulse. Judging by the size of wave 2, it can be assumed that it is already done, so we can expect a decline within the impulse sub-wave 3 in the medium term.

The end of the entire wave (A) is possible to the level of 1.2050. This is the previous low, which was formed by correction 4 through a triple zigzag form.

Currently, one can consider opening short positions to take profit at a specified level.