Globally, the wave pattern of the EUR/USD pair scale still looks quite convincing, while wave 4 is quite complete. Thus, the main option remains to increase quotes from the current levels within the framework of building wave 5 with goals located above the high of the expected wave 3 or C. This means that the instrument will increase to at least 20 figures, and most likely even higher. On the other hand, adopting a more complex form of wave 4 is currently not considered.
On a smaller time frame, the wave pattern still shows that the supposed wave 4 has taken on a three-wave form and is probably completed. If this is true, the quotes' growth will continue within wave 5. Last Friday, the instrument gained about 70 pips and continues to move confidently to the 20 figure based on the current wave pattern.
During the last trading day and two weekends, several important news items were released at once. First, Donald Trump has recovered from the coronavirus, which was confirmed by his doctor. Secondly, regular negotiations between Democrats and Republicans took place over the weekend, during which Treasury Secretary Steven Mnuchin made a proposal for $1.8 trillion. However, Democrats, led by Joe Biden and Nancy Pelosi, refuse to accept a package of less than $2.2 trillion. If earlier, they could say that Trump is not aware of the full scale of the crisis and does not want to provide too expensive assistance to the economy, now the Democrats themselves look quite unattractive as the Republicans are still trying to find a compromise. However, not everything is so simple. Trump continues to insist that every American receive the $ 1,200 benefit personally signed on the check. Naturally, this is the populism that Biden and Pelosi want to avoid. Thus, the negotiations failed again.
Interestingly, even the Republicans in the US Senate did not approve the new proposal of Trump and Mnuchin, considering it unnecessarily expensive. Thus, even if the Republicans meet the demands of the Democrats tomorrow, this bill will still be ignore in the Senate, which is controlled by the Republicans. Third, it became known that Joe Biden further widened the gap over Donald Trump three weeks before the Election Day. According to the latest opinion polls, Biden is already 12-16% ahead. Thus, the position of the current US President is getting more dark, despite all his attempts to turn the course of the election campaign in his favor with the help of TV debates, stories with a rapid recovery from coronavirus and other cunning techniques.
General conclusions and recommendations:
Since the euro/dollar pair has presumably completed the construction of correctional wave 4, I recommend buying the instrument with targets located near the calculated level of 1.2012, equating to 0.0% Fibonacci.
