EUR/USD, H4:
Like last Monday, we will start the working week by examining the situation on the market for the EUR/USD currency pair.
Currently, the downward correction wave 4, which is part of the large-scale impulse, continues to develop. Wave 4 has a simple zigzag structure. We saw the completion of the first two sub-waves (A) and (B), and now the process of building a bearish impulse wave [C] is underway, which can complete the entire corrective wave 4 in the area of the 1.1680 mark.
Let's look at the layout of the last section of the chart on the hourly time frame.
EUR/USD, H1:
Upon a detailed examination of the structure of the downward impulse wave [C], it can be seen that after the upward correction wave (4) was completed, in the form of a double zigzag, the market formed three sub-waves 1-2-3. These sub-waves are part of the final wave (5), which takes the form of a simple impulse.
Hence, we should assume that we are currently in a bullish correction 4.
Most likely, it will form a zigzag [A]-[B]-[C] to the level of 1.1835, as shown in the chart. At this level, the value of correction 4 will be 38.2% along the Fibonacci lines from the impulse wave 3. Corrective waves are often found with this coefficient, so the probability of reaching this price level is high.
It is assumed that, after the end of wave 4, the final wave 5 will lead the market in a downward direction to the level of 1.1680. We will continue to monitor the currency pair in the future.
The material has been provided by InstaForex Company - www.instaforex.com