EUR/USD, H4:
Let's start a new trading week by analyzing the situation for the EUR/USD currency pair.
The market is still moving inside the downward corrective wave 4, which takes the form of a triple zigzag [W]-[X]-[Y]-[X]-[Z]. The final part of the second wave of the bundle [X] is now in the process of construction. The whole wave [X] takes the form of a double zigzag (W)-(X)-(Y).
The price for EUR/USD may rise slightly higher than we previously expected. The new predicted level at which the construction of the wave [X] will end is 1.2117. At this level, the value of the wave [X] will be equal to 76.4% on the Fibonacci lines of the current wave [Y].
Let's consider the structure of the last section of the chart on H1.
EUR/USD, H1:
On a smaller timeframe, we see sub-wave markings (W), (X), and (Y), which form a double zigzag [X].
Wave (W) is an upward triple zigzag, wave (X) has taken the form of a standard zigzag, consisting of three A-B-C sub-waves. Wave (Y) is also likely to take the shape of a simple A-B-C zigzag.
The market may have finished the development of the downward correction B, which has a small double zigzag formation [W]-[X]-[Y]. Then the price jumped sharply. There is a possibility that the final bullish wave C has begun to develop. The price in this wave may continue to rise to the level of 1.2117 in the near future.
How this target was chosen is described in the four-hour time frame.
