The most recent upward waves confuse the wave analysis on the 4-hour chart for the euro/dollar pair. These waves may be the initial wave of a new upward trend segment (because the last downward section can be considered three-wave and complete) or an internal wave of a complex downward series of waves. To date, all indications point to a new upward trend segment, although the GBP/USD pair is simultaneously forming a simpler pattern different from the EUR/USD pattern. Because of this, the wave pattern for the euro currency could be very complicated, and it is already very hard to figure out. If the development of an upward set of waves continues at this moment, it can be completed at the current positions, as the peak of the third wave has surpassed the peak of the first. A similar thing was observed in the previous downward formation. At the same time, there are a variety of alternatives to wave analysis, which is currently completely confusing. When the expected wave c (a series of downward waves) turned out to be quite weak, I believe it is now appropriate to begin from the scenario, including an increase in the pair. Hence, buyers are now stronger than sellers.
The euro currency is growing slower than it may appear.
Tuesday has already passed without an increase in the euro/dollar pair. If we analyze the entire last section of the trend, we can conclude that the euro has not risen significantly. After completing the last significant part of an upward trend, we observed a classic three-wave corrective, after which it was unclear what began. The trend area following March 15 is a completed three-wave pattern. Therefore, the pair's collapse could begin as early as today or tomorrow. Questions from market participants now relate to wave analysis and each unique movement within a single day. Yesterday, for instance, the demand for the EU currency increased significantly. Why has the British pound added so much today but not the euro? The answer would be straightforward if the background news on Monday and Tuesday were minimally present. There were no significant messages, news, speeches, or reports yesterday. Nonetheless, the movements of both pairs are intriguing and nearly impossible to predict.
Since the pair has recently preferred to move in three waveforms, it is extremely difficult to make a long-term forecast. To be more exact, it is possible, but the market is not prepared for a significant increase in the euro or the dollar. This explains the three wave patterns, which alternate within a 500-point range. What possibilities exist for the euro to grow at this time? Only the ECB's more strict interest rate intentions compare to those of the Fed. We will begin immediately, as there are even fewer reasons for the dollar to increase.
Conclusions in general.
Based on the analysis, the section's development with respect to the downward trend is complete. Yet, the upward section of the trend can also be completed in the same manner, which consists of three waves. Hence, it can now provide advice on sales and purchases. The news context does not answer the question of the pair's most probable direction of movement. Also, wave analysis. Given the current state of affairs, I recommend exercising caution when purchasing near-term targets.
On the older wave scale, the ascending trend section's wave analysis has taken on an extended form but is likely complete. We saw five upward waves, which most likely followed the a-b-c-d-e pattern. The development of a downward trend segment may not be complete, and it may have any form and size.
