EUR/USD Market Insight: Wave 2 Complete – Is the Third Wave Set to Ignite?

Based on our analysis, the recent structure appears to have completed a complex double zigzag correction into 1.1767 – a critical level that marks 100% equality between Waves Y and W. This symmetry is a common terminating point for complex corrections and suggests that the (ii) wave is likely complete.

We now enter a key inflection zone. If this interpretation holds, the next move would initiate Wave (iii), the strongest and most impulsive leg of the motive wave structure. Historically, third waves show steep, high-momentum behavior and are often supported by strong participation and positive macro momentum.

What We’re Watching

• Wave Structure: Clean 5-wave impulse off the January 21 low, followed by a W-X-Y correction ending Feb 2.

• Support: Confluence of Fibonacci symmetry at 1.1767.

• Next Target Zone: 1.2440, aligning with the 161.8% extension of Wave (i) projected from the Wave (ii) low — a textbook Wave (iii) projection.

Technical Outlook

• Wave (ii) correction complete as a double zigzag W-X-Y.

• Price showing signs of reversal from key fib support at 1.1767.

• Momentum indicators diverging and volume increasing — supportive of a motive sequence starting.

What This Means for Traders

If this is the beginning of Wave (iii), traders should prepare for sharp directional moves and increased volatility. Wave (iii) offers some of the best risk-to-reward setups when confirmed, especially when paired with tight structure-based invalidation levels.

As always, we’re monitoring the structure live. Subscribers of The Signal Service will be notified if this setup confirms into a tradeable leg.

Note: Signals do not include static stop-loss or take-profit levels. Risk is managed dynamically, and all trades are monitored live. Position sizing is determined via account size — refer to the lot sizing guide pinned in our Telegram channel.

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