Wave analysis for EUR/USD on October 5, 2021

EUR/USD, H4 timeframe:

Let's continue to analyze the situation of the EUR/USD pair through Elliott's theory.

According to Elliott's theory, there was a formation of horizontal corrective wave 4 for the EUR/USD pair, which consists of three main sub-waves and takes the form of a wave plane [A]-[B]-[C].

The first two zigzag waves [A] and [B] appears to be fully done. So, a bearish impulse wave [C] is now forming. As part of this impulse [C], sub-waves (1)-(2)-(3)-(4) were completed, while the final sub-wave (5) is still under development.

There is an assumption that the price will decline to the level of 1.1520 in the near future, where sub-wave (5) will be completed, which may be followed by the pair's growth as demonstrated in the chart.

In terms of today's economic calendar, the ISM index of purchasing managers for the US non-manufacturing sector will be published at 14:00 Universal time. This will be followed by Christine Lagarde's speech at 15:00 Universal time, in which she could leave hints about the course's behavior.

Currently, it is recommended to consider opening sell deals in order to take profit at the specified level.