EUR/USD, H4 timeframe:
Let's continue to analyze the situation of the EUR/USD pair through Elliott's theory.
The correction wave 4 is presented on the four-hour timeframe, which takes the form of a wave plane [A]-[B]-[C].
The structure of the last descending wave [C] is presented at the higher wave level, which takes the form of an impulse (1)-(2)-(3)-(4)-(5). As for the smaller wave level, we can consider the structure of the fifth part of this impulse, namely the sub-wave (5). It shows that wave (5) is similar to an impulse [1]-[2]-[3]-[4]-[5], and to complete it, a sub-wave [5] is needed.
It is assumed that wave [5] will be completed by the level of 1.1520. After that, the price will reverse and start moving in an upward direction.
According to the economic calendar, there are two important pieces of news today that may affect the EUR/USD pair. The first news will be released at 11:30 Universal time – the publication of the minutes of the ECB meeting on the UK's monetary policy. The second news will be released at 14:30 Universal time – the publication of the number of initial applications for unemployment benefits in the United States.
Currently, one can consider opening sales deals or wait for confirmation of the bullish trend and then make purchases.
