EURUSD Does The Flat Formation Continue?

By Orbex

The current structure of the EURUSD pair suggests the construction of a downward correction pattern. This takes the form of a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag of the primary degree.

It seems that two months ago the bearish wave Ⓨ ended, which took the form of a double zigzag (W)-(X)-(Y) of the intermediate degree. Then prices moved sideways within the primary intervening wave Ⓧ . This took the form of an intermediate triple three (W)-(X)-(Y)-(X)-(Z).

In the near future, an increase in the sub-wave (Z) to the level of 1.1485 is likely. After reaching this level, market participants can expect the depreciation of EURUSD in the primary wave Ⓩ.

Another option shows that the intervening wave Ⓧ could have already bent. In this case, it is a double zigzag of the intermediate degree.

Therefore, there is an expectation for a descending primary wave Ⓩ to form in the upcoming trading days. This actionary wave is likely to take a complex formation of a double zigzag (W)-(X)-(Y).

The end of the potential double zigzag will likely be around the level of 1.0939. At that level, primary wave Ⓩ will be at 50% of wave Ⓨ.

Article by Orbex

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