23.03.202118:39 Forex Analysis & Reviews: Analysis of EUR/USD on March 23, 2021. Yellen and Powell's speech did not impress the markets

The wave counting on the 4-hour chart nevertheless took on a more non-standard form, since the markets did not manage to overcome the 50.0% Fibonacci level. Thus, another three upward waves ended around 1.1977, making two unsuccessful breakout attempts. Thus, at the moment, the instrument has moved on to building a new downward set of waves, presumably also a three-wave set. If this is true, then two of the three waves have already been built, which means that the decline in quotes may be short-lived. Or the entire trend section, which originates at the beginning of the year, will take on a more complex and extended form. However, I would now pay the most attention to the fact that the instrument moves in three-wave structures. Thus, it does not matter what the wave counting is at the global level. Understanding that the instrument builds alternating three-wave structures is already enough to trade successfully. Thus, I expect the quotes to drop to a maximum of 1.1780 shortly, which corresponds to 76.4% Fibonacci.

A fairly large number of events have been planned in the news calendar today. However, nothing interesting has happened at the moment. The most important events of the day are speeches by US Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell. However, at the time of this writing, their performances have just begun, and the markets have not even had time to figure out what Powell and Yellen are talking about. In anticipation of these officials' speeches, the US dollar rose. It was rising for most of the day. However, I cannot make an unambiguous conclusion that this rise was connected precisely with the speeches of Powell and Yellen. The fact is that there were no prerequisites for the dollar to rise. The markets did not expect anything definite from the said speech.

During the day, the US and the European Union did not have a single important economic report, therefore the statistics had nothing to do with the downward movement of the instrument on Tuesday. The yield of the US 10-year Treasuries has been declining during the day, and it was not it that caused the Euro/Dollar instrument to fall. Thus, based on the analysis of all the facts and factors, we can make an almost unambiguous conclusion that no factors today influenced the mood of the markets. The tool does not stand in one place, even if there is no news or reports. The market is moving anyway. Thus, the market was moving today based on various technical factors. Or wave.

I would like to note a successful attempt to overcome the 61.8% Fibonacci level, from which the instrument bounced twice in recent days. This breakthrough speaks in favor of the markets' readiness for new sales of the instrument. Thus, a decline in quotes is now very likely. Accordingly, I recommend selling the instrument with targets located around 1.1780.

The wave counting of the upward trend section still has a fully completed five-wave form and is not going to get complicated yet. But the part of the trend, which began its construction immediately after it, takes on a rather complex form. The instrument is likely to build alternating corrective structures for some time. The supposed wave d turned out to be shortened, so the construction of the supposed wave e has already begun.