EUR/USD, H4 time frame:
Today's review is relative to the situation with the EUR/USD pair. Let's start with a higher time frame.
The market continues to form a downward correction wave 4, which is a triple zigzag [W]-[X]-[Y]-[X] -[Z]. Since the end of March, the second wave of the bundle [X] is being constructed.
It is assumed that the wave [X] will take the double zigzag form (W)-(X)-(Y). Meanwhile, the final wave (Y) is likely to have a more complex structure and take the form of a triple zigzag.
There is a possibility that we will see a fully formed wave [X] to the level of 1.2115. At this level, it will be equal to 76.4% of the previous wave [Y].
Now, let's consider the structure of wave [X] on the H1 time frame.
EUR/USD, H1 time frame:
The wave bundle [X] consists of three main sub-waves (W)-(X)-(Y). The wave (W) is an ascending triple zigzag. The wave bundle (X) is a small standard zigzag (A)-(B)-(C). In turn, the wave (Y) is also a triple zigzag like the wave (W).
Judging by the internal structure, the sub-waves W-X-Y-XX, which are part of the wave (Y), are fully completed. In the near future, the current sub-wave (Z) is expected to form towards the level of 1.2115.
The reason why we chose this level as the target is described under the higher time frame.
At the moment, one can consider opening deals for purchases.
