FX.co ★ Wave analysis of EUR/USD on November 2, 2021

Based on recent price movements, it can be concluded that the development of the downward trend has not yet been fully done. Wave 4 consists of sub-waves [A]-[B]-[C] and is a wave plane. Now, the development of the impulse wave [C] can be seen, in which the development (5) takes place.

It is worth noting that wave (5) contains sub-waves 1-2-3-4-5. Most often, the fourth waves take the form of extended and shallow corrections. Judging by the wave structure of the last section, wave 4 can take the form of a converging horizontal triangle [A]-[B]-[C]-[D]-[E]. An upward correction is being formed now [C].

It is highly likely that the sideways movement in the indicated triangle will continue today and in the coming trading days. After the completion of wave 4, the price may continue to decline in impulse wave 5, namely to the area of 1.1487.

In the current situation, it is recommended to consider the lateral nature of the market when making trading decisions.