FX.co ★ Wave analysis of EUR/USD on March 17, 2021

EUR/USD, H4:

At the beginning of the trading week, we analyzed the situation with the EUR/USD currency pair.

Currently, we see the continuation of the development of the bearish corrective wave 4, which is part of the global impulse trend. Correction 4 resembles a simple zigzag [A]-[B]-[C], where sub-waves [A] and [B] are fully formed, and the last wave [C] is still in the process of development.

Let's consider the structure of wave [C] on a smaller time frame.

EUR/USD, H1:

On the hourly time frame, you can see that the downward wave [C] has an impulsive structure. It consists of sub-waves (1)-(2)-(3)-(4)-(5).

Currently, prices are structuring the final active wave (5), possibly, it will be a simple five-wave impulse, as shown in the chart.

At the time of writing this article, waves 1 and 2 of impulse (5) are fully completed and the formation of a bearish wave 3 has begun.

Consequently, the price will continue to move downward shortly, until the completion of the third wave, then, after a slight pullback in the corrective wave 4, the fall will continue again in the wave 5.

The estimated end level of the impulse decline is 1.1780.