The current EURUSD formation hints at an impulsive move. It consists of five primary degree waves ①-②-③-④-⑤.
Currently, we see a bearish (A)-(B)-(C) zigzag in wave ④. After the completion of wave (A), we expect the correction in wave (B) to take prices near 1.191. This will be at the previous high registered by wave (5).
Then prices could fall in wave (C) near the 1.170. This will be the low formed by wave (A), completing a potential flat correction in wave ④.
Ending wave ④could trigger an upside move in the final wave ⑤.
An alternative scenario sees the correction wave ④ as a double (W)-(X)-(Y) zigzag.
The intermediate degree pattern could take prices down to the 1.1320 area. This will be at 50% of impulse wave ③.
However, this level is far from the top of wave ① at 1.1150. Therefore, we can expect a further decline too.
The double-4s bottom near the 61.80% Fibonacci could allow bears to form a triple zigzag, or a longer wave (Y).