EUR/USD, H4 time frame:

The wave theory indicates that a large correction wave 4 is formed on the four-hour time frame, which takes a triple zigzag [W]-[X]-[Y]-[X]-[Z] form.

Recently, the development of the bundle wave [X] was completed, after which the market began to move in a new downward wave [Z].

Now, let's look at the chart layout in more detail on the hourly time frame.

EUR/USD, H1 time frame:

Following the completion of the bundle wave [X], the development of impulse wave 1 was observed, which consists of sub-waves of a smaller wave level [1]-[2]-[3]-[4]-[5].

The market then began to move in a bullish correctional wave 2, taking the form of a zigzag [A]-[B]-[C]. Given the depth and duration of this zigzag, it may well be fully done. In this case, the market can expect a sharp decline in the initial part of momentum 3 in the near future.

One can consider opening short positions in the near future. The first downward target is at the low of wave 1, namely the level of 1.213.