EUR/USD, H4 time frame:

It is assumed that the correction wave 4, which takes the form of a triple zigzag [W]-[X]-[Y]-[X]-[Z], is currently under development. Perhaps, the first four parts of this pattern are already over. The second wave bundle [X] turned out to be larger than the first wave bundle [X], but it also has a simple zigzag structure.

Therefore, the descending section that was seen on the last part of the chart is the beginning of the bearish active wave [Z]. It is very possible that a downward impulse is currently taking place, which will give rise to a zigzag wave [Z].

Now, let's closely look at the area on the hourly time frame.

EUR/USD, H1 time frame:

Analyzing the hourly time frame, the completed two parts of the bearish impulse – sub-waves 1 and 2, impulse, and zigzag, can be observed. The market began to form the initial part of the third wave after they ended, which is usually the largest in the impulses.

At the moment, only sub-waves [1] and [2], a five-wave impulse, and a three-wave simple zigzag are fully done.

In this case, the development of the sub-wave [3] can be expected in the near future. The pair is likely to decline well below the low of 1.2104. It should be noted that impulse wave [1] was completed at this level.

Currently, one can consider opening sell deals in order to take profit at a specified level.