The release of today's news can significantly accelerate the development of a bearish impulse. America's index of unfinished sales in the real estate market will be published today at 15:00 Universal time. Traders are also waiting for the speech of the Fed Chairman, Mr. Powell, which will take place at the same time.
EUR/USD, H4 timeframe:
The EUR/USD pair is supposed to build a global triple zigzag W-X-Y-XX-Z. Currently, the bearish acting wave Y is developing. This wave takes the form of a simple zigzag [A]-[B]-[C].
The impulse wave [A] and the bullish correction [B] look fully done, while the bearish wave is in the development stage [C]. Its initial part hints at an impulse. A five-wave impulse wave (1) and a bullish correction (2) in the form of a zigzag A-B-C were completed.
At the moment, the price decline in impulse (3) can be seen. The first four parts already completed their composition. In this case, we can expect a decrease in the final wave 5 to the level of 1.11. At this level, the magnitude of wave 5 will be 50% of wave 3. There is a high probability of achieving this coefficient.
An approximate scheme of possible future movement is shown on the graph.
Trading recommendations:
It is recommended to buy from the current level and take profit at 1.11.