EURUSD Bears Target 1.160

By Orbex

The EURUSD pair is developing a large bullish impulse. This impulse consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).

Now the market is in an intermediate correction (4), which has a complex internal structure of a triple W-X-Y-X-Z zigzag.

Most likely, the level of 1.226 completed the second minor intervening wave X followed by a bearish market move in the wave Z. The wave Z hints at a triple zigzag consisting of minute sub-waves. The development of the last fifth sub-wave of the minute degree has now begun.

In the near future, a decline in the wave ⓩ to 1.160 is likely. At that level, the minor Z wave will be at 123.6% of the minor actionary Y wave.

Alternatively, the market recently completed the formation of the actionary minute wave ⓨ, which is part of the minor wave Z.

Thus, the currency pair could increase in price in the intervening wave ⓧ. It is possible that it will be equal to 61.8% of wave ⓨ. This means that it could end near the level of 1.204.

Only after the wave ⓧ is fully completed, market participants can observe a decline in the wave ⓩ below the level of 1.175 marked by the wave ⓨ.

By Orbex