FX.co ★ Wave analysis of EUR/USD on March 15, 2021

EUR/USD, H4:

On the four-hour time frame, we see the final structure of the upward impulse wave 3, which has fully completed its development. Then the market began to move in a downward direction, forming a corrective wave 4.

Correction 4 is a simple zigzag [A]-[B]-[C]. At the moment, the final impulse wave [C] of this zigzag is being formed.

Let's consider its detailed structure on a smaller time frame.

EUR/USD H1:

The bearish impulse wave [C] consists of five sub-waves of the smaller wave level - (1)-(2)-(3)-(4)-(5).

After the completion of the bullish correction (4) in the form of a zigzag, the market reversed and continued to move down. Apparently, the construction of the final impulse wave (5) has begun. Since the decline in this wave began quite recently and only the first two small sub-waves 1 and 2 have formed at the moment, then we should expect the continuation of the depreciation of EUR/USD shortly.

The chart schematically shows the possible structure of the impulse (5), which is formed by sub-waves 1-2-3-4-5. The end of the impulse decline is possible near the level of 1.1780. In the current situation, one can consider opening sell deals in order to take profit at a specified level.