FX.co ★ Wave analysis of EUR/USD on January 31, 2022

The last section of the chart on the four-hour timeframe for the EURUSD currency pair shows the internal structure of the downward wave Z. This wave is the final part in the global corrective pattern - the triple zigzag.

Most likely, wave Z will take the form of a standard zigzag [A]-[B]-[C], as shown in the chart. Full completion of this zigzag is expected around 1.065. The level is determined using the Fibonacci line tool. At the indicated level, the value of wave Z will be 76.4% of the previous active wave Y. The probability of reaching the specified coefficient is high.

In the short term, we can expect a fall to the level of 1.100, the end of the first impulse wave [A] is expected.

Thus, in the current situation, it is possible to consider longs in order to take profit at the specified level.

Trading recommendation: sell 1.1153, take profit 1.1000.