The EURUSD formation shows a bullish impulse, with the bearish correction ④ being completed. This took the form of a double (W)-(X)-(Y) zigzag.
At the time of writing, the market is building the initial part of the primary wave ⑤, which is likely to have the structure of an intermediate impulse (1)-(2)-(3)-(4)-(5).
Within this impulse, the price can reach the previous high above 1.234.
An alternative scenario shows the formation of the primary correction ④ is not yet complete. This now looks at the formation of a triple (W)-(X)-(Y)-(X)-(Z) zigzag of the intermediate degree.
The first four parts of this construction have completed their pattern, and now the formation of the last bearish wave (Z) has begun.
In the short term, we expect the development of a minor A-B-C zigzag, as shown in the chart. This could complete the wave (Z) near the 1.159 area.
At that level, wave (Z) will be at 61.8% of wave (Y).