(Click on image to enlarge)

In the long term, the EURUSD currency seems to form a bearish cycle impulse. This consists of sub-waves I-II-III-IV-V.

Most likely, the cycle impulse sub-wave III has ended. Then the formation of the horizontal correction IV began. This correction is similar to a double zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ.

The primary sub-waves Ⓦ and Ⓧ look complete. The development of the last sub-wave is likely to end at 1.0282. At that level, wave Ⓨ will be at 123.6% of  first actionary wave Ⓨ.

(Click on image to enlarge)

According to the alternative, the cycle correction IV has been completed and it is a standard zigzag Ⓐ-Ⓑ-Ⓒ.

In the last section of the chart, we can notice the development of the last leg of the cycle wave V. This takes the form of a primary impulse ①-②-③-④-⑤.

The final sub-wave ⑤ most likely takes the form of an ending diagonal. We see that the correction sub-wave (4) has gone above the end of the correction sub-wave (1).

In the near future, the market is expected to decline in the sub-wave (5) to 0.948. At that level, the entire cycle wave V will be at 38.2% of wave III.

More By This Author:

Intraday Market Analysis: US Dollar Bounces Back
Venezuela Vs Iran: Which Will Have Sanctions Lifted
Venezuela Vs Iran: Which Will Have Sanctions Lifted?