31.08.202112:45 Forex Analysis & Reviews: Wave analysis for EUR/USD on August 31, 2021

EUR/USD, H4 time frame:

Let's continue to analyze the situation of the EUR/USD pair through the two timeframes.

On the four-hour timeframe, it can be seen that this currency pair has formed a long corrective wave 4 in the long term, which has a horizontal internal structure and has taken the form of a wave plane [A]-[B]-[C].

Therefore, the ascending section, which began to form after the end of correction 4, may indicate the beginning of a new bullish wave. If so, an increase in the EUR/USD rate is possible.

Now, let's look at this area on an hourly timeframe.

EUR/USD, H1 time frame:

It shows that a bullish impulse wave is forming in the last section of the chart, in which the first two small sub-waves (1)-(2) have already been built. The sub-wave (1) is the impulse 1-2-3-4-5, while the sub-wave (2) is the zigzag correction A-B-C. We expect growth to continue within wave (3) above the level of 1.1909 in the near future, which was marked by the correction (4).

There will be an important event today at 14:00 Universal time. The US consumer confidence index will be published, which may affect the growth of the market.

Trading recommendations:

Since an upward wave (3) is expected to develop in the near future, one should consider opening deals from the current level in order to take profit at the previous high, that is, at the level of 1.1909.