FX.co ★ Wave analysis of EUR/USD on November 3, 2021

Let's continue to analyze the situation in the currency market using the Elliott theory. Today, the market is filled with economic news in the US. The main news and events are the change in the number of employees in the non-agricultural sector, the publication of data on crude oil inventories, the FOMC result, and the decision on the Fed's interest rate.

EUR/USD H4 timeframe:

The market continues to form a medium-term downward trend, which is the final part of a long correction wave 4. The last part of correction 4 is a bearish impulse [C], which includes sub-waves (1)-(2)-(3)-(4)-(5).

Wave (5) is currently developing, in which the formation of a long-term corrective wave 4 of a smaller wave level is observed. This wave is a triangle and consists of sub-waves [A]-[B]-[C]-[D]-[E].

Taking into account the structure of this triangle, it can be concluded that its wave [C], which is now being formed, may take a simple bullish zigzag form. Moreover, if we consider the mass of news that will be published in the US today, the last wave of the bullish zigzag [C] may be completed. This means that we can see rapid growth to the level of 1.167, then the price may return to the zone where it is at the moment of publication of the review, i.e. to the area 1.158.

The approximate possible pattern of future movement is shown on the chart.

Trading recommendations:

It is recommended to open long positions from the current level with the target of 1.167.