The wave marking of the EUR/USD instrument in global terms suffered certain changes after the quotes fell below the minimum of wave b. And in the coming days, it may suffer new changes, since the trading of recent days has almost completely broken the current wave markup. At first, I assumed that a new triple down would be built. Now the entire wave marking can take an even more serious form and the construction of an upward trend section will resume. If this is true, then the increase in quotes will resume within wave 5, and wave 4 will take a very long form.
A smaller-scale wave marking also indicates the possible end of the downward section of the trend that begins on October 21. With the final decrease, the instrument could form a wave from the next three, so after its completion, a new three can be built up, or the upward trend section within the global wave 5 can be resumed, as I mentioned when analyzing the 24-hour timeframe. If this is the case, then the construction of a correction wave 2 or b may soon begin.
The American election is over, however, the vote count continues. If yesterday the chances of Joe Biden were in the balance, although he was ahead by 50 electoral votes, as wavering states preferred Donald Trump, now in three of the four still uncounted states, Joe Biden is already in the lead. Thus, the Democrat can breathe more calmly. Most likely, he will win the presidential election. Meanwhile, Donald Trump, according to several sources in the United States, will behave in the coming weeks as if he won the election. It is reported that the current President does not recognize the possible victory of Joe Biden and is going to sign several very serious documents in the near future, in particular, with China. This strategy will be aimed at convincing the country that it was he who won the election and to look as "presidential" as possible, according to American sources. Several layoffs could also follow, notably FBI Director Christopher Wray and Defense Secretary Mark Esper. At the same time, the Trump team is going to initiate legal proceedings in several states at once, where, in their opinion, there were violations in the counting of votes. Thus, the most interesting part of the election is still ahead.
Yesterday, the Fed also held a meeting, at which no important decisions were made. Markets' attention was drawn to the speech of Fed Chairman Jerome Powell, who was very pessimistic due to the uncertainty associated with the coronavirus in the United States, as well as the lack of a new package of assistance to the American economy. However, the markets were not too interested in this information. The US dollar continues to decline amid political confusion and potential chaos.
General conclusions and recommendations:
The euro/dollar pair presumably completed the construction of a three-wave downward trend section. Thus, at this time, I recommend buying a tool with targets located near the 1.2010 mark, which corresponds to 0.0% Fibonacci, for each MACD signal "up", based on the construction of wave C. However, before the construction of this wave begins, quotes may depart from the reached highs within wave b.
