EUR/USD, H4 time frame:

We will continue to analyze the situation of the EUR/USD pair. For a more specific picture, let's start looking at the four-hour time frame.

Here, a downward corrective wave is shown. It most likely takes the form of a triple combination, which consists of five sub-waves [W]-[X]-[Y]-[X]-[Z]. It is very possible that the formation of the second wave of the bundle [X] is already done.

Apparently, the initial part of the bearish impulse wave has begun forming on the last part of the chart, which will be part of the new zigzag pattern. We marked this part with red sub-waves 1-2-3.

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

EUR/USD, H1 time frame:

It can be seen that the market reversed and began to decline after the end of the upward impulse wave (C), which completed the construction of the large wave of the bundle [X].

Perhaps, the downward wave 1 has been completed by now, which represents a bearish five-wave impulse. The upward correction [2] also looks fully done. It consists of three main sub-waves and is the standard zigzag [A]-[B]-[C].

The beginning of the third wave is most likely being constructed on the last part of the chart, which will be larger in magnitude than the first two parts – sub-waves 1 and 2. Currently, the sub-waves [1]-[2] have been formed.

The price may decline to the level of 1.2132 in the near future. This is the previous low that was formed by impulse wave 1.