Wave analysis for EUR/USD on September 2, 2021

EUR/USD, H1 time frame:

Let's continue to analyze the situation of the EUR/USD pair in the hourly time frame.

The formation of the EUR/USD pair signals the end of a major corrective wave 4. It has a horizontal internal structure and is a wave plane [A]-[B]-[C]. According to the rules in the wave planes, the first two sub-waves are corrective, and the last third sub-wave is impulsed. Looking at wave 4, it shows that its sub-waves [A] and [B] are zigzags, and wave [C] is an impulse.

The upward movement can be seen in the last part of the chart. Apparently, the formation of a bullish impulse has begun, so the price of EUR/USD is expected to rise in the near future.

Currently, sub-waves (1) and (2) are completely done, and now, sub-wave (3) is being built. The first target is located at the level of 1.1909, which was marked by the correction (4). After reaching this level, the bulls will lead the price to higher levels.

In addition, the number of initial applications for US unemployment benefits will be released today at 14:00 Universal time, which may accelerate the growth of the currency pair.

Trading recommendations:

It is recommended to open buy deals from the current level in order to take profit at the level of 1.1909.