EUR/USD: A completed skewed triangle gives a signal of further growth
For the EURUSD pair, in the long term, we can observe the formation of a correction wave IV inside a large impulse. Cycle correction IV, most likely, takes the form of a primary double zigzag.
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The actionary leg and the bearish corrective intervening wave are completed. The final actionary wave may be under development.
Like the previous primary waves, can take the form of an intermediate zigzag (A)-(B)- (C). The first impulse (A) and correction (B) in the form of a skewed triangle are fully completed. In the near future, we expect growth in the potential impulse (C) to 1.135. At that level, this impulse will be equal to wave (A).
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An alternative scenario suggests that the primary wave is not a simple zigzag, but a double one. It is marked with sub-waves (W)-(X)-(Y).
The intermediate wave (W) looks like a completed triple zigzag. Currently, an intermediate wave (X) may be in the process of construction, which may take the form of a minor double zigzag W-X-Y.
In the near future, the price may go down to 1.080. At that level, wave (X) will be at 50% along the Fibonacci lines of wave (W).
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
