The wave pattern in the EUR / USD pair remains unchanged, but if we look closely at the upper part of the structure, we will see that movement continues to build up, thereby making the pattern more complicated, especially amid decreasing dollar demand in the market. The previous wave also assumes a decline to the 15th figure, while the new wave suggests an increase to about 21 pips above.
Meanwhile, the pattern on the lower time frames indicates that wave 3 or C has resumed its construction, and this is clearly depicted by the successful breakout of the quotes from the highs reached the day before. Thus, wave 4 that is inside the pattern has taken an "a-b-c-d-e" structure, and wave 5 is starting to form in the chart as well.
Keep in mind though that the current wave pattern is not final at all, as its structure could become more complex as time passes by. Everything will depend on the demand for the US dollar, as it is now the main reason why the euro and the pound is rising in the market.
In particular, the recent statements made by the Federal Reserve have greatly impacted currency tradings in the market. Not only did the revisions on monetary policy decrease demand for the US dollar, but the sharp drop in US Treasury yields have contributed as well. In addition, Fed officials remain concerned about the situation with the coronavirus, since the pandemic continues to negatively affect the pace of economic recovery. In fact, the Fed's capabilities are not limitless, and if the virus is not defeated yet in the coming year, the US central bank may be deprived of the ability to support the country's economy and its liquidity.
General conclusions and recommendations:
Wave 3 or C continues to form in the EUR/USD pair, thus, long positions to 1.2089, or 323.6% Fibonacci are suggested. An unsuccessful breakout from this mark may suggest the completion of the entire wave 3 or C, but, as mentioned above, this wave can become infinitely more complicated, depending on the demand for the US dollar in the market.
