FX.co ★ Wave analysis for EUR/USD pair on June 21, 2021

EUR/USD, H4 time frame:

It is assumed that the bearish correction wave 4 takes a more complex formation than what was predicted in previous reviews. It may be a bearish triple zigzag [W]-[X]-[Y]-[X] - [Z].

As part of this pattern, the first four parts are already completely done – the active sub-waves [W] and [Y] and the waves of the bundle [X] and [X]. The final active sub-wave [Z] is currently under development.

The completion of this wave is expected to reach the level of 1.1702. This is the previous low at which the formation of the acting wave [Y], which took the form of a simple zigzag (A)-(B)-(C), was done.

Now, let's take a look at the pattern of the downward wave [Z] on a smaller time frame.

EUR/USD, H1 time frame:

The current sub-wave [Z] can take the form of a double zigzag. It is marked by three sub-waves (W)-(X)-(Y), where the wave (W) also has the structure of a double combination W-X-Y.

It is assumed that the wave (X) is fully formed, followed by an impulse price decline in wave A. It should be noted that wave A is the initial part of the wave (Y), which can be simple in shape.

If this is really the case, we can expect a small pullback in the bullish or horizontal correction B in the near future. It will be small in size and its pattern will be completed soon. After that, the pair may continue its decline in the second impulse wave C to the low of 1.1702.

Currently, one can consider opening sell deals to take profit at the previous low.