Forex Trading Library

EURUSD Flat or Zigzag?

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In the long term, the EURUSD currency is likely to form a bearish cycle impulse that consists of sub-waves I-II-III-IV-V.

Most likely, the cycle impulse sub-wave III ended and then the formation of the horizontal correction IV began. This correction is similar to a flat consisting of primary sub-waves Ⓐ-Ⓑ-Ⓒ.

In the near future, the completion of the correction leg Ⓑ is likely near the minimum of 0.985. This is shown by the intermediate wave (A). After that, the pair could witness an impulse to the maximum of 1.037.

According to the alternative, the cycle correction IV has been fully completed and it is a standard zigzag Ⓐ-Ⓑ-Ⓒ.

In the last section of the chart, we notice the development of the initial part of the cycle fifth wave. This could take the form of a primary bearish impulse ①-②-③-④-⑤.

It seems that the first two small sub-waves ①-② are already fully completed. In the near future, the construction of the primary wave ③ in the form of an intermediate impulse (1)-(2)-(3)-(4)-(5) is likely to reach the level of 0.939.

At the specified level, impulse 3 will be at 161.8% of impulse ①.

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