FX.co ★ Wave analysis for EUR/USD on August 6

EUR / USD, H4 chart:

There was a huge correction in EUR/USD. Its last wave, wave 4, consists of three sub-waves named [A] - [B] - [C].

Wave [C] also consists of subwaves (1) - (2) - (3) - (4) - (5). Ans since it is located in the last part of the pattern, it will be classified as an impulse.

The first four parts of this impulse are completely constructed, while the fifth one is still in the process of development. Most likely, in the coming days, the pair will decline and complete this wave (5).

Upcoming data on the US labor market will be an impetus for this move, and may even accelerate the depreciation in wave (5).

Considering this, it is only logical to open short positions in the market, so as to avoid losing profit. Then, close the position at 1.172, which is where wave (5) should end.