FX.co ★ Wave analysis of EUR/USD for December 6, 2021

EURUSD, H4:

Recall that the Eurodollar is supposed to build a global downward trend, which takes the form of a double zigzag. On the four-hour timeframe, we see the development of the middle part of the indicated structure, that is, the current wave Y is being built.

Wave Y is similar in its internal structure to a simple zigzag [A]-[B]-[C]. The bearish impulse wave [A] and the upward corrective wave [B] were completed. The third wave [C] is in the process of development, which hints at a simple five-wave impulse (1)-(2)-(3)-(4)-(5).

Most likely, the first two parts of impulse [C] are fully completed, and the third part is coming to an end, that is, it is said about impulse (3). In the near future, we could see the price decline in subwave 5 to the level of 1.1140. At this level, the magnitude of wave 5 will be 50% of the previous impulse wave 3.

Thus, in this situation, it is possible to consider opening sell deals from the current level in order to take profit at the end of the impulse (3).

Sell: 1.1294, Take profit: 1.1140.