FX.co ★ Wave analysis for EUR/USD on July 9, 2021

EUR/USD, H1 time frame:

It can be seen that the EUR/USD pair is forming the final wave (Y) on the last part of the hourly time frame, which is part of a large triple zigzag. It is worth noting that wave (Y) consists of three main sub-waves A-B-C.

The sub-waves A and C are impulses, while sub-wave B is a correction, which is an ascending double zigzag. The first two parts of this zigzag appear to be fully done. In turn, the last impulsive wave C is still being formed. Its fifth part is a sub-wave [5].

Now, let's consider the details of the wave [5] structure. It is marked in blue under the waves (1)-(2)-(3)-(4)-(5). The momentum (1) and the zigzag correction (2) look complete, so the continuation of the decline in the sub-waves is possible ahead (3)-(4)-(5), as shown in the graph.

The price may decline to the level of 1.1688, where the values of impulses A and C will be equal. There is a high probability of reaching this level. Thus, we have time to open sell positions in order to take profit at the end of the corrective movement.