EURUSD, H4:
The situation for the EURUSD currency pair is as follows:
The market is building a large bearish zigzag, which is wave Y and consists of subwaves [A]-[B]-[C]. Subwaves [A] and [B] has been fully completed, and wave [C] is in the process of building. Let's take a closer look at the internal structure of wave [C].
Impulse [C], like all impulses, consists of five subwaves (1)-(2)-(3)-(4)-(5). At the moment, wave (3) is being formed, within which the development of corrective wave 4, signed with a red number, is taking place.
This wave appears to be taking the shape of a bullish zigzag [A]-[B]-[C]. Now we see the growth of the market within the impulse wave [C] of 4. According to the instructions on zigzags, subwaves [A] and [C], as per statistics, most often tend to be equal. That is why the possible end of the impulse wave [C] can be determined by the magnitude of the impulse [A].
Based on this, we can conclude that [C] may end at the level of 1.142, at which the value of the entire wave [C] will be 100% of the impulse wave [A]. We can then see a decline in a new bearish impulse wave 5, roughly as shown in the chart.
Trading recommendations: Since we now see the construction of an impulse wave [C], within which the market is moving in a bullish direction, it is now possible to open long positions from the current level with the target at 1.142.