EURUSD Retreats on Double Zigzag?

The current EURUSD structure suggests that we are on a bullish impulse in wave (C). The 5-wave formation consists of minor sub-waves 1-2-3-4-5.

 Waves 1-2 and 3 are fully completed, whereas wave 4 completed two parts of its double zigzag ⓦ-ⓧ-ⓨ pattern.

In the midst of wave ⓨ, we could see a minuette impulse in wave (c) completing the correction near 1.108. At that level, wave 4 will be at 61.8% of impulse 3.

Then, prices are expected to rise in minor wave 5 above the previous high registered by wave 3.

An alternative scenario suggests that correction 4 has already been completed as a simple zigzag ⓐ-ⓑ-ⓒ.

Wave 5 is expected to end in a minute ending diagonal.

In the medium term, we could see a gradual rise to the area of wave 3 – 1.142. That is along the trajectory of the upper diagonal trendline.

Join our responsible trading community - Open your Orbex account now!