Wave analysis for EUR/USD
EUR / USD H4 chart:
Initially, the EUR / USD market was bullish, but as soon as wave 3 ended, the bears pushed the euro down, thereby forming a corrective wave. This bearish wave 4 has a simple zigzag formation: [A] – [B] – [C], and its final impulse, wave C, is nearing its end.
EUR / USD H1 chart:
Its structure can be seen more clearly in the H1 time frame, as there it has taken a double zigzag formation: W-X-Y.
And after the euro completes this correction, wave 5 will most certainly begin, which should also be bearish. Here, the quote will most probably head to 1.1635, which is equal to 61.8% Fibonacci of wave 3.
Taking this into account, it is obvious that we should short the euro in order to get huge profit from the market.
The material has been provided by InstaForex Company – www.instaforex.com