18.01.202218:01 Forex Analysis & Reviews: Wave analysis of EUR/USD on January 18, 2022

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EURUSD, H4:

On the last section of the chart of the 4 Hour timeframe, we see the formation of a triple zigzag. In its composition, the descending wave Y was completed, which took the form of a simple zigzag [A]-[B]-[C]. After that, we saw the formation of a new zigzag [A]-[B]-[C], which forms the ascending wave bundle XX.

Within the framework of the new zigzag, the first impulse wave [A] was completely completed, followed by a horizontal corrective wave [B] in the form of an inclined triangle. Wave [B] is an inclined triangle, because its forming lines are directed towards the emerging trend, that is, upwards.

Now we are in wave [C], which takes the form of a five-wave impulse (1)-(2)-(3)-(4)-(5). Most likely, the decline in a small correction (4) has come to the end, so growth in the subwave (5) may soon begin.

The end of wave (5) is expected at the level of 1.1600. At this level, the size of wave XX will be 38.2% on the Fibonacci lines from wave Y.

Investment decisions: buy 1.1355, take profit 1.1600.

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