Important news for today:
The U.S. PPI report, scheduled at 13:30 UTC, could trigger a bullish move in corrective wave 4.
EURUSD, H4:
For the EURUSD currency pair, we see the formation of a downward correction figure, which takes the form of a triple zigzag W-X-Y-XX-Z. The middle part—the Y sub-wave—is in the process of development, where three main sub-waves can be noticed – [A]-[B]-[C].
Wave [A] is a bearish impulse; on the current chart, we see only the last part of this impulse. Wave [B] is a simple correction. Wave [C] is still in the process of development, but there is an assumption that it will represent an impulse (1)-(2)-(3)-(4)-(5), as shown on the chart.
Let's pay attention to the impulse wave (3), which is now being built, or rather its fourth part - correction 4. This correction seems to take the form of a double zigzag [W]-[X]-[Y]. Sub-waves [W]-[X] are already over, and the last sub-wave [Y] may end in the area of level 1.1381, marked by the current sub-wave [W]. The above-mentioned news may affect the acceleration of the rate rise to the specified price mark, after reaching which the price may begin to decline in sub-wave 5.
In such a situation, it is possible to consider opening buy deals from the current level in order to take profit at the level of 1.1381.
Trading recommendations: buy from the current level, take profit 1.1381.
