FX.co ★ Wave analysis for EUR/USD on September 20, 2021

EUR/USD, H4 timeframe:

Let's continue to consider the situation of the EUR/USD pair using the Elliott theory.

According to Elliott's theory, we are in the final part of the global bullish impulse.

Looking at the four-hour timeframe, it shows that the fourth wave was built within the bullish impulse - correction 4 in the form of a wave plane [A]-[B]-[C].

After that, the price started to rise and a new bullish wave developed. This wave can take the form of a simple five-wave impulse. Currently, its first sub-wave (1) is fully done and the formation of a bearish correction (2) is most likely already over. It took the form of a double combination W-X-Y.

Therefore, the development of an upward sub-wave (3) and, accordingly, price growth is expected in the near future.

It is assumed that the pair will update the previous high of 1.1911 soon, which was noted by the sub-waves (1) and (4). In the current situation, it is recommended to consider opening long positions.