EUR/USD, H4 timeframe:
The current pattern for the EUR/USD pair indicates that a large downward Y wave is developing in the market, which in its structure takes the form of a simple downward zigzag [A]-[B]-[C].
Sub-waves [A] and [B] were fully done, while impulse wave [C] is now forming. This wave consists of sub-waves (1)-(2)-(3)-(4)-(5). The main thing right now is the fact that the development of corrective wave 4, which has taken the form of a long-term lateral corrective wave, was seen. Apparently, this wave is a triple three, which, judging by its markings, has already been fully completed.
It follows that we might have seen the beginning of a bearish impulse wave 5, in which the price will continue to decline in the near future.
The first target for impulse 5 is at the level of 1.1184, namely at the level of the low formed by the previous impulse wave 3.
News: Given that important news on the number of initial applications for unemployment benefits in the US will be published today at 13:30 Universal time, a fairly rapid decline in the impulse wave can be observed. This news may provoke the development of impulse 5, and the price will move in the way indicated on the chart.
Trading recommendations: In the current situation, it is possible to open short positions from the current level with the target at 1.1184. The market has a fairly reliable signal now, as wave 4 looks like a fully formed triple three. Do not miss this trading opportunity and control the risks.
