EUR/USD, H4 time frame:
We will continue to analyze the situation of the EUR/USD pair.
Analyzing the four-hour time frame, a downward correction wave can be observed. It most likely takes the form of a triple combination, consisting of five sub-waves [W]-[X]-[Y]-[X]-[Z]. Relative to this, it is very possible that the formation of the second wave of the bundle [X] is already done.
On the last part of the chart, it seems that the initial part of the bearish impulse wave, which will be part of the zigzag pattern, has begun its construction.
Now, let's closely look at the situation on the hourly time frame.
EUR/USD, H1 time frame:
In the hourly time frame, it shows that the market reversed and began to decline after the completion of the upward impulse wave (C), which finished forming the large wave of the bundle [X].
It is possible that the descending wave 1 in the form of a five-wave impulse, as well as the first two parts of the bullish correction, is fully completed today.
The ascending correction 2 can take a simple form and have a zigzag structure [A]-[B]-[C]. As mentioned above, the first two sub-waves of this zigzag already look finished. Thus, the price may rise in the final impulse [C], that is, to the level of 1.2235 in the near future. At this level, the magnitude of wave 2 will be 76.4% of wave 1. This is a common coefficient in zigzags.
Currently, one can consider opening long positions with target profit at the specified level.