EUR/USD, Daily chart:

A study of the daily time frame of the EUR/USD currency pair shows that the market is forming a large upward wave link [X], consisting of sub-waves (A) - (B) - (C) and is a zigzag.

At the moment, an impulsive wave (C) of this zigzag is being formed, in which the 1-2-3 sub-waves were completed. Now the market is declining in correction 4, which can be completed around the level of 1.172. At this level, the value of the entire fourth wave will be 38.2% along the Fibonacci lines from the bullish impulse 3.

Then, after the completion of wave 4, the market may rise in impulse 5 above the previous high 3, i.e. above the level of 1.235.

EUR/USD, H4 chart:

A more detailed market layout is seen in the H4 chart. Wave 4 likely takes the form of a simple downward zigzag [A]-[B]-[C]. Waves [A] and [C] are pulses, [B] are zigzags.

Since [A] and [B] were fully completed, the market is now declining [C] towards the level of 1.172.

The target of 1.172 was determined by the Fibonacci lines on the daily time frame. Thus, market participants can soon expect a decline in the impulse form in the sub-waves (3)-(4)-(5), as indicated on the chart.

We will continue to watch this currency pair in the future.