FX.co ★ Wave analysis of EUR/USD on November 9, 2021

EUR/USD, H1 timeframe:

The wave continues its formation, which takes a converging horizontal triangle [A]-[B]-[C]-[D]-[E] form according to the current assumptions. Wave [A] of this triangle was completed in the form of a zigzag (A)-(B)-(C), while wave [B] also formed a zigzag, but only descending. A bullish wave [C] is currently developing, which, according to the current wave pattern, can also take the form of a bullish zigzag. If this is true, then wave [C] will consist of three sub-waves (A), (B), and (C).

However, one indication regarding triangles should be taken into account, according to which one of the sub-waves of the triangle can take the form of a long and complex correction structure. Based on this, it is necessary to consider the probability that [C] will be double or triple.

Once wave [C] is fully done, the movement will continue in the sub-waves [D] and [E] of 4. An approximate scheme of possible future movement is presented on the graph.

In terms of the economic calendar, news that will be published this afternoon in the US, for example, the speech of the Fed Chairman, Mr. Powell, or the publication of the producer price index, may positively affect the market and lead to an increase in the rate in the wave [C].

Trading recommendations:

It is recommended to open long positions from the current level of 1.1596 with the target of 1.1634.