FX.co ★ Wave analysis for EUR/USD on July 6, 2021

EUR/USD, H1 time frame:

Let's continue to consider the situation of the main currency pair EUR/USD.

The development of the current wave [Z], which is part of the bearish triple zigzag, is shown in the last section of the chart. This triple zigzag forms a long-term corrective wave 4, which is part of the global upward impulse trend.

The wave [Z] is a complex descending double combination (W)-(X)-(Y). The last active sub-wave [Z] is a standard zigzag pattern A-B-C. On June 20, the bearish impulse wave A was completed, then the price moved within the corrective wave B in the form of a double zigzag for about a week. Currently, a descending impulse wave C is under development, which is placed five below the waves [1]-[2]-[3]-[4]-[5].

It is very possible that the formation of the upward correction [4], consisting of sub-waves (W)-(X)-(Y), is already done. This is a signal to decline in the final wave [5]. Perhaps, the bears will bring the price to the level of 1.1702. In this case, it is worth considering to open sell deals to take profit at the specified level.

Market participants will be able to earn about 140 points if they open deals from the current level with the target of 1.1702.