Wave analysis for EUR/USD on October 22, 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, the currency pair forms an impulse trend, which recently completed its final part. We are talking about the fourth wave - correction 4. It has a horizontal structure and is a wave plane [A]-[B]-[C], which seems to be fully done now.

An upward price movement can be observed, which could be the beginning of the final fifth wave of global impulse. The sub-waves of a smaller wave level [1]-[2] were completed, then impulse formation began [3]. It is assumed that the price will rise in the wave [3], significantly above the level of 1.190, which was marked by correction (4).

Currently, one can consider opening buy deals in order to take profit at the specified level.

Traders are waiting for the EU leaders' summit today at 10:00 Universal time. After that, Fed Chairman Mr. Powell will deliver a speech at 15:00 Universal time. These events can strengthen the bulls, and the price can rise more actively.

Trading recommendations:

It is recommended to buy from the current level, and then take profit at 1.190.