FX.co ★ Wave analysis for EUR/USD on August 10, 2021

EUR/USD, H4 time frame:

The markup of the EUR/USD pair on a four-hour time frame will be considered today. So, we will analyze in detail what is formed in the market from the point of view of Elliott's theory and give trading recommendations.

Looking at the higher wave level of this instrument, it can be seen that there is a formation of a large horizontal correction 4, which takes the form of a wave plane. Earlier, sub-waves [A] and [B] are completed, and the impulse wave [C] is almost complete.

In turn, we can consider the internal structure of the impulse wave [C] at the smaller wave level. It shows that the first four parts of it are fully done, while the formation of the last fifth part is still in progress. The market is likely to form sub-waves 4 and 5 in the near future, as shown in the chart. Most likely, the price will decline to the level of 1.1673, at which the value of the entire correctional wave 4 will be 61.8% of the bullish impulse 3 (it is not visible on the chart). In impulses, there are often fourth waves with such proportions.

There is more than one important point that can affect the decline in the market. This is the news that will be published at 16:00 Universal time, which is a short-term forecast of the situation on the energy markets from the EIA.

Trading recommendations:

Since the price of the EUR/USD pair is expected to further decline, we can consider opening short positions. Take profit can be set at 1.1673.