FX.co ★ Wave analysis for EUR/USD on August 4

EUR / USD, H1 chart:

The hourly chart shows the internal structure of wave 4, which is part of the long-term correction in EUR/USD.

As seen on the chart, the fifth sub-wave of bearish impulse [C] has a diagonal pattern, and after it ended the market turned around and price began to rise again. This suggests that a bullish wave is developing, and it will most likely have five parts. But so far only two have taken shape and they are classified as sub-waves [1] and [2].

Sub-wave [1] also has a diagonal pattern, while sub-wave (2) has a zigzag structure. If the pair rises to 1.1975 in the coming days, sub-wave (3) will be formed.

Another important point that can help accelerate the growth of EUR/USD is the release of important news in the United States. Three reports will be published today, and all of them may provoke strong price movements and acceleration of the trend. These are the employment report on the US private sector, data on crude oil inventories and service PMI in the United States.