FX.co ★ Wave analysis for EUR/USD on December 8, 2021

EUR/USD, H4 timeframe:

The formation of a large corrective trend, which takes the form of a triple combination, can be observed for the EUR/USD pair. At the moment, the middle part of this figure is being formed – the sub-wave Y. This wave takes a simple zigzag [A]-[B]-[C] form.

Let's pay attention to the last wave [C], which is currently being formed. Its first two small sub-waves (1) and (2) are already completely done. Now, the impulse (3), or rather its fifth part, is in the formation stage.

Wave 5 will most likely end at the level of 1.1140, from which its value will be 50% of the previous impulse 3. Once the specified level is reached, market participants will have a small rebound in the correctional wave (4), as shown in the chart.

The number of open vacancies in the US labor market is expected to be published today at 15:00 Universal time, and crude oil inventories are due at 15:30 Universal time. It is worth noting that important news could accelerate bearish impulse.

Therefore, one can consider opening sell deals in order to take profit at the end of wave (3).

Trading recommendation:

It is recommended to sell from the current level. Take profit can be considered at 1.1140.