For Traders

Analytical Reviews

Wave analysis

04.08.202112:46 Forex Analysis & Reviews: Wave analysis for EUR/USD on August 4

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

EUR / USD, H1 chart:

The hourly chart shows the internal structure of wave 4, which is part of the long-term correction in EUR/USD.

As seen on the chart, the fifth sub-wave of bearish impulse [C] has a diagonal pattern, and after it ended the market turned around and price began to rise again. This suggests that a bullish wave is developing, and it will most likely have five parts. But so far only two have taken shape and they are classified as sub-waves [1] and [2].

Sub-wave [1] also has a diagonal pattern, while sub-wave (2) has a zigzag structure. If the pair rises to 1.1975 in the coming days, sub-wave (3) will be formed.

Another important point that can help accelerate the growth of EUR/USD is the release of important news in the United States. Three reports will be published today, and all of them may provoke strong price movements and acceleration of the trend. These are the employment report on the US private sector, data on crude oil inventories and service PMI in the United States.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.