FX.co ★ Wave analysis of EUR/USD on January 28, 2022

EURUSD, H4:

The market continues to move according to the previously chosen scenario. A downward movement of the market and the construction of a complex corrective pattern are expected.

It is possible that a triple zigzag W-X-Y-XX-Z is forming. Most likely, the first four parts of this triple zigzag are already fully completed, that is, we are talking about W-X-Y-XX sub-waves. The initial part of the final active wave Z is now in the development stage.

Wave Z is supposed to take the form of a standard zigzag [A]-[B]-[C]. Now the price is going down in the first wave [A], which may take the form of an impulse. Its end is expected near the level of 1.100. Then, after a small correction [B], the decline can be continued in the sub-wave [C] towards the level of 1.065.

The level of 1.065 was determined using a tool - the Fibonacci line. At this level, the value of wave Z will be 76.4% of wave Y. The probability of reaching the specified ratio is high.

In the current situation, it is possible to consider short transactions.

Trading recommendation: sell 1.1153, take profit 1.1000.