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Wave analysis for EUR/USD on July 5, 2021

EUR/USD, H1 time frame:

analytics60e2722c96701.jpg

Today, we will continue to analyze the EUR/USD pair by considering the situation on the hourly time frame.

The chart shows the final part of the deep correction wave 4, which is a bearish triple zigzag [W]-[X]-[Y]-[X]-[Z], that is, it refers to the current wave [Z].

The internal structure of wave [Z] hints at a double zigzag, which was marked as blue sub-waves (W)-(X)-(Y). The first two sub-waves of this zigzag were already fully done, while the last sub-wave (Y) is being formed.

The blue wave (Y) has a simple zigzag shape A-B-C. Wave A is a five-wave impulse, correction B is a double zigzag [W]-[X]-[Y], and wave C is also an impulse that is still under development.

Therefore, the bearish impulse wave C, or rather its fifth sub-wave, is expected to develop to the level of 1.1702. Currently, it is possible to consider sales in order to take profit at the specified level.

The material has been provided by InstaForex Company - www.instaforex.com