FX.co ★ Wave analysis of EUR/USD on November 10, 2021

EUR/USD, H1 timeframe:

The development of a major downward trend in the EUR/USD pair continues. This trend takes a simple downward impulse form, in which a correction wave 4 is currently developing, taking the form of a long-term correction, namely, a converging horizontal triangle.

This triangle includes the sub-waves [A]-[B]-[C]-[D]-[E]. It should be noted that [A] and [B] are already fully done, while [C] is still being constructed. Wave [C] consists of sub-waves (W)-(X)-(Y) and is a double zigzag.

It appears that the first bullish zigzag (W) recently completed its development, after which the price began to move downwards in a small corrective wave of the bond (X). Soon after the completion of (X), the upward movement will continue in the zigzag (Y), within which we will see a price growth to the level of 1.1624. At this level, the value of the entire wave [C] will be 61.8% of wave [B], i.e. [C] may end at the level of the so-called golden section.

Based on all of the above, it is possible to open long positions today with a target at 61.8% along the Fibonacci lines, namely at the level of 1.1624.

Trading recommendations:

It is recommended to open long positions from the current level of 1.1573, with a target of 1.1624.