EUR/USD: Triangle is completed, we are waiting for a drop in impulse

Jing Ren Orbex

EURUSD continues to form the correction wave IV inside the large-scale impulse. Cycle correction IV, most likely, takes the form of a primary double zigzag.

The actionary leg is completed. A bearish corrective intervening wave, may be in the development stage now. It is also similar to the standard zigzag (A)-(B)-(C). The triangular intermediate correction (B) has recently come to an end, and now the price may be in the last impulse wave (C).

It is assumed that the price may fall to 1.016. At that level, impulse (C) will be at 161.8% of first impulse (A).

An alternative scenario suggests that the intermediate correction (B) not a triangle, but a double zigzag. Its end is possible at the previous maximum of 1.103, at which we saw the end of the first actionary wave.

Only after reaching the maximum, the market will turn and decline. Alternatively, it is also assumed that the primary intervening wave can take a horizontal structure, and then it will not be a zigzag, but, let's say, a double three.

While we are watching which of the scenarios the currency will move.

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.

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