On the 1H chart for the EURUSD, we can see the development of a bearish cycle impulse, which consists of five main sub-waves I-II-III-IV-V.
Most likely, the cycle impulse sub-wave III was fully completed, after which the formation of a bullish correction IV began. This correction is similar to a triple zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
The first four primary sub-waves look complete. The development of the last sub-wave Ⓩ is expected in the near future. It may form a W-X-Y double zigzag pattern at 1.0903. At that level, cycle correction IV will be at 50% of bearish impulse III.
According to the alternative scenario, the cycle correction IV has been fully completed and it is a standard triple zigzag.
In the last section of the chart, we can notice the beginning of the last leg of the global cycle impulse, that is, wave V.
In the near future, the exchange rate is expected to decline to the level of 0.9539. This level is the minimum that marked cycle impulse III.
Test your strategy on how the euro will fare with Orbex - Open your account now.
