FX.co ★ Wave analysis for EUR/USD on July 5, 2021

EUR/USD, H1 time frame:

Today, we will continue to analyze the EUR/USD pair by considering the situation on the hourly time frame.

The chart shows the final part of the deep correction wave 4, which is a bearish triple zigzag [W]-[X]-[Y]-[X]-[Z], that is, it refers to the current wave [Z].

The internal structure of wave [Z] hints at a double zigzag, which was marked as blue sub-waves (W)-(X)-(Y). The first two sub-waves of this zigzag were already fully done, while the last sub-wave (Y) is being formed.

The blue wave (Y) has a simple zigzag shape A-B-C. Wave A is a five-wave impulse, correction B is a double zigzag [W]-[X]-[Y], and wave C is also an impulse that is still under development.

Therefore, the bearish impulse wave C, or rather its fifth sub-wave, is expected to develop to the level of 1.1702. Currently, it is possible to consider sales in order to take profit at the specified level.