Hello, let’s analyze the EUR/USD pair using wave analysis.
According to the Elliott Wave theory, a corrective trend is forming on a higher wave level, which is likely to form a triple W-X-Y-XX-Z zigzag.
On a smaller scale, it is possible to identify the internal structure of the current wave Y, which is forming at the moment. The wave Y is likely similar to a standard zigzag [A]-[B]-[C]. Apparently, the first two parts of this zigzag have already fully completed their patterns: the sub-wave [A] is an impulse, the sub-wave [B] is a simple correction.
The final wave [C], which could take the form of an impulse (1)-(2)-(3)-(4)-(5), is under development. The first half of this impulse has already been built, so it is possible to expect further development of the second half in the medium term. An approximate scheme of a possible future price movement is shown on the chart with the trend lines.
Currently, the market is assumed to be in the final part of the corrective wave 4, which forms a zigzag [A]-[B]-[C]. The last leg of the final diagonal [C] is probably being built. It is expected to end at 1.1385, which was marked by the impulse sub-wave [A].
Currently, it is possible to consider opening buy trades to take profit at the specified level.
The material has been provided by InstaForex Company – www.instaforex.com