FX.co ★ Wave analysis of EUR/USD on November 5, 2021

EUR/USD, H1 timeframe:

The price of the EUR/USD pair is in the process of developing a large bearish impulse, which consists of sub-waves 1-2-3-4-5. Following the full completion of impulse wave 3, the formation of a long sideways corrective wave 4 was seen, which takes a converging horizontal triangle form and consists of sub-waves [A]-[B]-[C]-[D]-[E].

It is worth noting that wave [A] was completely done, which took the form of a simple bullish zigzag (A)-(B)-(C). Correction [B] was also completed in the form of a zigzag, but already descending. Now, the development of wave [C] has already begun.

It shows that one of the triangle's sub-waves tends to take the form of a complex correction. So, considering that the first two parts of the triangle have taken the form of simple sub-waves, it is possible that wave [C] may be a complex correction in the form of a combination of zigzags or double three.

In this case, we should expect the prices to grow today, but it is necessary to take caution when making trading decisions since wave [C] can take the form of a complex wave.

Trading recommendations:

The completion of wave [C] can be expected around the level of 1.1642. Therefore, opening long positions in order to take profit on the movement in wave [C] can be considered.