FX.co ★ Wave analysis of EUR/USD on December 7, 2021

EURUSD, H4:

We see the formation of the middle part of the global downward trend, which is taking the form of a triple zigzag W-X-Y-XX-Z. In other words, wave Y is currently being built. The internal structure of wave Y suggests a simple zigzag consisting of subwaves [A]-[B]-[C].

The downward impulse wave [A], as well as the upward corrective wave [B], have already been completed. In the first half of September, we saw a reversal of the market and the beginning of a decline within the final wave [C].

Wave [C] is likely to take the form of a bearish impulse, which will consist of subwaves (1)-(2)-(3)-(4)-(5). At the time of this writing, we are seeing the construction of a downward impulse (3), more precisely, its final part - subwave 5. It is assumed that the price in subwave 5 will fall to the level of 1.1140. At this level, the magnitude of wave 5 will be 50% along the Fibonacci lines of impulse 3.

In the current situation, it is possible to consider opening short positions in order to take profit at the end of the impulse (3).