FX.co ★ Wave analysis for EUR/USD on January 14, 2021

EUR/USD, H4 timeframe:

The situation with the EUR/USD pair has not changed much since yesterday. The formation of the bundle wave XX can be observed, which began to develop after the downward zigzag Y, which includes sub-waves [A], [B], and [C], was fully completed.

The bundle wave XX, which is in the process of being formed, consists of sub-waves [A]-[B]-[C] and is a simple bullish zigzag. Sub-waves [A] and [C] are impulses, while correction [B] is an inclined triangle. Following the completion of this triangle, the price rose in the impulse wave [C], taking the form of a fairly rapid and fast wave.

Wave [C] may end at the level of 1.1599, at which the entire bundle wave XX may be completed. At this level, the value of the entire wave XX will be 38.2% along the Fibonacci lines from the previous downward wave Y.

In terms of news background, ECB President Legard will speak in the eurozone at 13:15 Universal time, which may contribute to the price's growth. After that, the basic retail sales index and retail sales volume in the US will be released at 13:30 Universal time. This news is important and may affect the movements in the market.

Trading recommendations:

It is possible to open long positions from the current level with the target of 1.1599.