The formation of the EURUSD currency pair shows the construction of a bearish correction ④ of the primary degree, which is part of a large bullish impulse.
This correction hints at an intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z), where the first four parts are already completed, and the last actionary wave (Z) has just begun to build.
In the near future, we can observe how the minute sub-waves form minor impulse A. Then, after the end of minor correction B, the price can continue to decline in bearish impulse C, as indicated on the chart.
The market can finish the construction of the entirety of wave (Z) near the previous low – 1.170.
Let’s look at an alternative scenario in which primary correction ④ develops in a horizontal direction and takes the form of a double three (W)-(X)-(Y).
At the time of writing, we see the finished wave (W), which is a double zigzag W-X-Y. And intervening wave (X) is still under construction. It is most likely to be simple in form and consist of three sub-waves A-B-C.
The minor impulse A is already completed, soon we can see the end of the formation of the bearish correction B- near the level of 1.198. At that level, wave B will be at 38.2% of wave A.
After the end of wave B, the bulls will lead the market to the previous high of 1.234, marked by the primary impulse ③.