FX.co ★ Wave analysis for EUR/USD on July 23, 2021

EUR/USD, H4 time frame:

The formation of the EUR/USD pair hints at the development of a correction. A bearish correction 4 is built in the form of a double zigzag. In its composition, the sub-waves [W] - [X] are completely done, and the wave [Y] is still under development.

The last part of the wave [Y] consists of sub-waves A-B-C and is a simple zigzag. We are interested in the last part of the impulse C. Not so long ago, the wave [4] of C was completed, which took the form of an inclined triangle (A)-(B)-(C)-(D)-(E). After that, the price continued to decline.

It is likely that the beginning of the bearish impulse [5] is now forming, within which we will see a decline to the level of 1.170. This level is determined by the previous low [W].

Therefore, there is currently a great opportunity to sell and make money on the downward movement in the impulse [5], placing the take profit at the level of 1.170.