EUR/USD, H4:
In today's review, we will continue to analyze the situation with the EUR/USD currency pair.
On the four-hour time frame, we see a downward corrective wave. It most likely takes the form of a triple combination and consists of five sub-waves [W]-[X]-[Y]-[X]-[Z]. Most likely, the construction of the second wave of the bundle [X] has already come to an end, since we see that it is quite larger than the other sub-waves.
This is a signal for the beginning of the formation of the final active wave [Z]. Let's take a look at the last section of the chart on H1.
EUR/USD, H1:
So, on the hourly time frame, we can see that the final impulse wave (C), which is part of the bundle wave [X], looks fully completed.
Then the market turned around and began to move down, and, possibly, will continue to move in this direction further. It seems that the first two small sub-waves 1 and 2 have already formed, which marked the beginning of the bearish impulse (A).
Most likely, wave [Z] will be a simple zigzag (A)-(B)-(C), as shown in the chart.
We could see the end of wave (A) near the level of 1.2050. This is the previous minimum.
Thus, you can consider opening short positions in the current situation.
