The wave layout of EUR/USD still indicates that the upward trend is in progress. The wave structure has got more complicated and elongated as the price has made higher highs. Nevertheless, the wave picture looks the same in principle. Only wave 3 in 5 has got lengthier. Now the wave structure clearly consists of 5 waves. Thus, at the moment the currency pair is building wave 5 in 5. If it is true, EUR/USD is expected to continue with a further climb for a while. At the same time, wave 5 could develop into a five-wave structure, so it might become rather lengthy.
Nevertheless, the wave layout of a shorter time frame indicates a possible completion of the upward section even despite complications in building wave 3. The inner wave structure of the expected wave 5 looks rather convincing. At present, its inner wave 5 is underway, but it could finish anytime. The thing is that amid low demand for the US dollar, wave 5 in 5 could get more complicated and lengthy. Everything will depend on market sentiment.
Global financial markets opened the new year in quiet trading. The bulk of news and economic data has been coming mainly from the US in late 2020 and early 2021. The event of major importance is the election to the Senate, though the market used to downplay the importance of this event. For your reference, November 3 was the day not only of the presidential election. Americans also voted in the elections to Congress and the Senate. The President-elect has been announced. The results of the election to the House of Representatives are also clear. The Democratic President won the election this time. Democrats also are going to set the tone in the House of Representatives. As for the Senate, it was dominated by Republicans under Donald Trump's presidency. So, it was the Senate which forged ahead with Trump's decisions.
Two Senators from each state are elected to the Senate. If the election in a certain state does not reveal a winner, a runoff has to be held. On November 3, only in Georgia neither of the candidates collected over 50% of votes. So, the runoff is scheduled for January 5. In fact, people in Georgia have already voted. Now the results are being counted. According to the latest update, two Democrats are taking the lead in Georgia. As half of the ballots have been already counted, Jon Ossoff has outpaced Republican David Perdue by 7%. Raphael Warnock has outrun Republican Kelly Loeffler by 8%. Certainly, the final count could differ from interim results. The thing is that Republicans need a victory at least of one candidate in this state to maintain control in the Senate. However, if both Republican candidates lose the runoff in Georgia, the Senate will consist of 50% Democrats and 50% Republicans. The decisive vote will belong to Kamala Harris, the new Vice President in Biden's team. This scenario means that all three branches of power in the US will be controlled by Democrats.
Conclusions and trading tips
EUR/USD resumed building the upward section. Nevertheless, the upward trend is about to complete soon. In the meantime, you are recommended to sell EUR/USD with targets at neat 1.20 and 1.19 at every bearish signal of the MACD indicator. Let me warn you that the wave layout of the uptrend section could evolved into a more complicated and lengthy structure. The expected wave 5 could end up with a complicated and elongated shape. So, it is premature to sell the currency pair.
