By Orbex

The current formation of the EURUSD currency pair suggests the development of a global bullish impulse. This consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).

The bearish correction wave (4) seems to have just been completed, as it has taken the form of a double zigzag W-X-Y.

Then the construction of the initial part of the intermediate fifth wave began.

Currently, the market has completed the minor wave 1 in the form of a simple impulse. Additionally, experts believe that the bearish minor wave 2, which is a double zigzag of the minute degree, has most likely come to an end.

Perhaps, in the near future, we will see an impulse growth within the minor wave 3 to 1.2536. At that level, wave 3 will be at 123.6% of wave 1.

The alternative scenario hints at the continuation of the development of the intermediate correction (4). Indeed, it may take the form of a triple zigzag W-X-Y-X-Z, rather than a double one.

Thus, at the time of writing, the first four parts of this pattern look fully completed, and the construction of the final actionary wave Z is at the initial stage.

Perhaps the minor wave Z will take the form of a minute double zigzag, as shown in the chart. We can expect it to end near 1.1603. At that level, wave Z will be at 123.6% of wave Y.

Moving forward, after the correction (4) is fully completed, the intermediate impulse wave (5) can send the market well above the high of 1.2263.

By Orbex