FX.co ★ Wave analysis of EUR/USD on December 13, 2021

EURUSD, H4:

For the EURUSD currency pair, we see the construction of a large corrective trend, which may take the form of a triple zigzag W-X-Y-XX-Z. On the four-hour timeframe, we see the internal structure of the middle part of this triple combination, that is, the Y subwave.

Wave Y is similar to a simple zigzag [A]-[B]-[C], which can be fully completed in the medium term, after which the market can start moving up in wave XX. Impulse wave [C] is needed to fully-complete wave Y. Most likely, wave [C] is only half completed, so in the near future, the price may continue to decline in the impulse wave (3), more precisely, in its fifth part.

Wave 5 is expected to end at 1.1140. At this price level, the magnitude of wave 5 will be 50% of the previous impulse wave 3. An approximate diagram of possible future movement is shown in the chart.

In the current situation, it is recommended to consider opening sell deals.