FX.co ★ Wave analysis of EUR/USD on May 21, 2021

EUR/USD, M15

The wave counting of the EUR/USD currency pair shows that an upward impulse was completed recently, which is most likely wave 1. The chart shows the internal structure of this impulse. It follows that soon we may expect a decline in the currency pair within the bearish corrective wave 2.

Also, judging by the initial part of correction 2, we can assume that this wave will take the form of a side correction. Thus, the options according to which wave 2 can take the form of a zigzag, double zigzag, double three, or a triangle immediately disappear. There are options for a plane, a double three or a triple three.

Taking into account that wave [A] has taken the form of a zigzag, and the initial part of wave [C] looks like an impulse, the whole wave 2 is most likely a wave plane.

Also, taking into account the fact that wave 2 is often 61.8% deep from wave 1, we can expect a rather sharp decline in the currency pair in the impulse wave [C] to the area of 1.2125. Thus, in this situation, sales from current positions are possible.