The EURUSD currency pair continues to build the wave bundle XX, which is part of a large bearish corrective trend that takes the form of a triple zigzag W-X-Y-XX-Z.
The wave bundle XX assumes a double zigzag [W]-[X]-[Y]. The active wave [W] was completed, as well as the horizontal wave bundle [X], which is similar to the inclined triangle (A)-(B)-(C)-(D)-(E).
Currently, we are seeing the formation of an active wave [Y]. Perhaps it will be simple in shape and will be a simple zigzag (A)-(B)-(C). It is assumed that the correction (B) has come to an end, so in the near future the price may rise in impulse (C), approximately, to the level of 1.1600.
At the indicated level, the value of wave XX will be 3.2% of the Fibonacci lines from wave Y. The probability of reaching the specified ratio is high. In the current situation, we can consider opening longs to take profit at the level of 1.1600.
Take profit 1.1600.
The material has been provided by InstaForex Company – www.instaforex.com