Fri, Jan 27, 2023 @ 10:40 GMT
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EUR/USD: A deep correction tends to 1.090

In the long term, the EURUSD currency is expected to form a bearish cycle impulse, which consists of five main sub-waves I-II-III-IV-V.

Most likely, the cycle impulse sub-wave III was fully completed, after which the formation of a bullish correction IV began. This complex correction is similar to a triple zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ look complete. The development of the last sub-wave is expected in the near future. It may form a double zigzag pattern (W)-(X)-(Y) near 1.090. At that level, correction IV will be at 50% of impulse III.

According to the alternative version, the cycle correction IV has already been fully completed and is a triple zigzag, as in the main version.

In the last section of the chart, we can notice the development of the initial part of the cycle wave V, which may take the form of a primary impulse or an ending diagonal.

It is assumed that the bears can re-go to the minimum of 0.953, at which a large impulse wave III was completed.

It is preferable to add this pair on our watchlist!

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