The wave pattern for the EUR/USD pair still indicates the formation of the upward trend. The upward wave 'c' continues its formation. It made a successful attempt to break through the high of the wave 3 or 'C'. The current ascending section of the trend may turn into a five-wave structure as the formation of new three waves has been completed. In this case, the entire wave pattern may become complex. Nevertheless, all this may indicate the upcoming downward reversal.
The wave pattern in a lower time frame also indicates that the formation of a new three-wave section of the trend continues. Alternatively, the wave pattern of the trend section, which started on November 4, may transform into a five-wave structure. At the same time, the trend may be completed by the formation of the wave 'C', followed by three new descending waves. Meanwhile, the pair went above its earlier high. The continuation of the uptrend indicates that the market is ready to continue buying the pair.
Friday was not a busy day in the eurozone and the United States. In fact, nothing interesting happened. Markets reacted positively to the outcome of the ECB meeting, although there was nothing optimistic. Otherwise, it also might be that the negative market reaction to the results of the ECB meeting was very restrained. Therefore, the general upward sentiment remained. Nevertheless, the wave-pattern already indicates the formation of a new upward wave. Moreover, the whole uptrend section will become more complex. Apart from that, markets paid little attention to the results of the EU summit. In the course of the summit, Poland and Hungary lifted their veto on the recovery fund and the 2021-2027 budget. Still, the instrument is trading near the highest level of the year. Meanwhile, nothing important happens in the United States. After the presidential election has ended, practically no information comes from either Donald Trump or Joe Biden. The stimulus package for the American economy was never agreed. A week ago, it was reported that a bipartisan group of lawmakers in the House and Senate unveiled a $900 billion stimulus plan but that was all about it. Donald Trump still believes in his victory, whereas courts in almost all American states continue to reject his voter-fraud lawsuit. Last week, the US Supreme Court rejected a lawsuit filed by Texas and seventeen other states for the lack of evidence from the accusing party. This clearly shows that Trump lost the election.
General conclusion and recommendations:
The euro/dollar pair is currently trading in an upward trend. Thus, I recommend that you be extremely careful when buying the instrument. So far, there have been no signals for the upward wave-construction to end its formation. Despite the fact that the wave 5 is currently being formed, it will be completed soon. Nevertheless, it is still possible to buy the pair following each of the new MACD buy signals with the targets set near 1.2250, which corresponds to the 127.2% Fibonacci extension level.
