The current EURUSD structure suggests the construction of a downward correction pattern. This takes the form of a triple zigzag of the primary degree, consisting of sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
It is likely that at the end of November, the bearish wave Ⓨ ended. This took the form of a double (W)-(X)-(Y) zigzag of the intermediate degree. After that, the market began to move sideways within the primary intervening wave Ⓧ. This intervening wave takes the form of an intermediate triple three (W)-(X)-(Y)-(X)-(Z).
To complete the horizontal pattern Ⓧ, a final sub-wave (Z) is required. Most likely, in the near future, we will observe a smooth increase in the sub-wave (Z) to the level of 1.1441. At the specified price point, wave Ⓧ will be at 23.6% of actionary wave Ⓨ.
After reaching this level, prices could fall in the primary wave Ⓩ.
An alternative scenario suggests that the sideways intervening wave Ⓧ could have already completed. According to this view, it is a double three of the intermediate degree.
In this case, a descending primary wave Ⓩ is likely to form on the market in the next coming trading days. This actionary wave is likely to take a complex double zigzag formation.
The end of the double zigzag is likely near 1.0844. At that level, primary wave Ⓩ will be at 50% of wave Ⓨ.
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