By Orbex
EURUSD assumes the construction of a downward correction pattern. This takes the form of a triple zigzag of the primary degree, consisting of sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
It seems that the bearish primary wave Ⓨ has ended, which took the form of a triple zigzag (W)-(X)-(Y)-(X)-(Z) of the intermediate degree. After that, prices moved higher within the primary intervening wave Ⓧ. This wave will likely take the form of an intermediate double zigzag (W)-(X)-(Y).
The completion of the entire primary wave Ⓧ is likely near 1.1711. At that level, wave Ⓧ will be at 61.8% of wave Ⓨ.
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Also, let’s consider an alternative scenario in which the intervening wave Ⓧ could already be fully complete. Here it is a triple three (W)-(X)-(Y)-(X)-(Z).
In this case, at the moment we are observing the formation of a descending primary wave Ⓩ. This actionary wave most likely takes on a complex triple zigzag formation (W)-(X)-(Y)-(X)-(Z).
The end of the correction decline in the primary wave Ⓩ is likely near 1.0677. At that level, primary wave Ⓩ will be at the 76.4% Fibonacci extension of wave Ⓨ.
After the primary pattern is fully complete, the market will begin to grow within the new bullish trend. In turn, this will update the maximum of 1.1498.
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Article by Orbex
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