EUR/USD: A bearish impulse is needed to complete the primary wave Ⓧ
|The EURUSD currency pair seems to be forming a large corrective wave within the global impulse trend. Cycle correction IV, most likely, takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ.
The first actionary leg Ⓦ is completed in the form of a simple zigzag (A)-(B)-(C). A bearish intervening wave Ⓧ may be in the development stage now. It is also similar to the standard zigzag (A)-(B)-(C), which requires the last impulse sub-wave (C) to complete.
It is assumed that the price, along with impulse (C) going down, may fall to the 1.007 mark. At that level, impulse (C) will be at 123.6% of first impulse (A).
An alternative scenario suggests that the primary intervening wave Ⓧ will be short and perhaps it is already fully completed in the form of a zigzag (A)-(B)-(C).
Thus, the last upward movement of the price may indicate that the development of a new actionary wave Ⓨ has begun. Like the primary sub-waves Ⓦ and Ⓧ, the wave Ⓨ can take a zigzag shape (A)-(B)-(C), as shown in the chart.
There is a high probability that the first intermediate wave (A) will end near the February maximum, that is, at 1.149.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.