FX.co ★ Analysis of EUR/USD on October 19. Joe Biden leads the pre-election against Donald Trump

Globally, the wave pattern of the EUR/USD still provides the convincing bullish outlook and has not changed at all recently. Thus, the main scenario is to let the quotes to further rise, while the construction of wave 5 is in progress. The targets are above the high of the suggested wave 3 or C. To simply put, this pair is expected to rise at least until the 20th figure or even higher. The complications in the wave 4 structure, in turn, are not being talked about. Interestingly, wave 5 is looking unusual since its inner structure doesn't look like a standard momentum wave. Thus, the whole wave could develop a lengthy look.

The wave pattern on smaller time frames still indicates that the suggested wave 4 consists of three shorter waves, which is perhaps completed. If it is true, the currency pair will resume its growth inside wave 5. However, there are doubts recently that the ongoing rise is actually development of wave 5. What is actually going on is that wave 4 is likely complicated looking like a-b-c-d-e. The argument for this scenario is that the pair has not made a successful attempt yet of breaking the high of wave b inside 4. So, this option remains valid until 23.6% fibo is successfully broken.

Recently, there have been very few reports from the European Union. An EU summit was held last week, wherein Brexit issues were resolved. Now, COVID-19 is the most hot topic in Europe, since the cases are rising in many countries, but this does not affect the Eurocurrency so far. The wave structure shows that it is very possible that the upward wave will be constructed.

As for the news background in the US, everything comes down to the topic of presidential elections again. It should be recalled that there are only two weeks before the elections, but this also has no effect on the instrument's quotes. Rather, elections are just a hindrance for most traders. Before such an important event, the markets do not want to actively trade. Moreover, there is not much time left for Donald Trump to change something in this pre-election scenario. We can say that the US president has already done everything he could. Now, only the last round of debate with Joe Biden remains, in which Trump was advised by his campaign headquarters to joke more, interrupt his opponent less and speak in a calmer tone. Thus, despite Trump's claims of his own victory in the first round of the debate, even his own campaign team thinks differently. We can only wait for the elections themselves. The pre-election has already begun, with over 22 million Americans voters and Joe Biden is in the lead.

General conclusions and recommendations:

It can be presumed that the euro/dollar pair has completed forming the correctional wave 4. But since the high of wave b at 4 is not yet broken, this suggests a possible complication of the entire wave 4. Thus, buying the pair is recommended with targets located near the calculated level of 1.2012, equating to 0.0% Fibonacci, for each MACD signal upward, for every global wave 5. However, in case that the 23.6% level will be broken, an alternative scenario will be considered.