FX.co ★ Wave analysis for EUR/USD on June 16, 2021

EUR/USD, H4 time frame:

The previous pattern was slightly changed. Perhaps, the main currency pair has not yet completed the formation of the ascending wave of the bundle [X], which is part of the global double zigzag.

The wave [X] can take the form of a simple zigzag, in which only the first two parts – sub-waves (A) and (B) are completed at the moment. The wave (A) has a standard impulse structure, while the bearish correction wave (B) is a triple zigzag W-X-Y-XX-Z.

Therefore, we are currently at the beginning of the final wave (C), which means that market participants may expect price growth in the upcoming trading days and we need to prepare to open buy deals.

Let's closely look at the situation in a smaller time frame.

EUR/USD, H1 time frame:

It shows here that the downward correction wave (B) looks completely done. It has a complex formation. Recently, the final Z wave was formed, which took a simple zigzag [A]-[B]-[C] form, followed by a market reversal and the beginning of growth.

It is possible that the small sub-waves 1 and 2, which are part of the wave (C), have already ended. This wave can take the form of a simple 1-2-3-4-5 impulse.

Thus, the development of the last three sub-waves 3-4-5 is expected in the near future based on the graph. We can assume that the bulls will drive the market to the previous high, which was marked by the impulse wave (A), that is, to the level of 1.2268.

Currently, one can consider opening buy deals in order to take profit at a specified level.