28.09.202014:49 Forex Analysis & Reviews: EUR/USD analysis on September 28. Nancy Pelosi: Democrats are preparing a new proposal to Steven Mnuchin on a package of assistance to the American economy

The wave count of EUR/USD pairs in the global plan still looks quite convincing in all that relates to the upward trend, which presumably ended with the wave 3 or C. After September 1, the construction of the proposed wave 4 began and first took the trehvaltsovoj view. But the continued decline in prices led to the complication of the inner wave structure of this wave. Thus, the entire downward wave takes a more complex and extended form and may even not reach at wave 4, but the first wave as part of a new downward trend section.

A smaller-scale wave layout shows that two smaller-scale waves have already been completed inside the assumed wave 4, and an assumed wave 3 or C in 4 is currently being constructed within which smaller-scale waves are also being viewed. Thus, most likely, we are now seeing the construction of wave 4, which takes a complex and extended form. A successful attempt to break through the level of 23.6% suggests that the instrument is ready for further decline.

The US currency has been in demand for the past days and weeks. The only question is, what was the reason for the growth of the dollar being in demand? There is not much positive news from America at this time. Many key issues remain unresolved and I don't want to talk about the epidemic in the United States, which did not end (unlike many European countries) from the very beginning. If in Europe, the first wave, the second, and so on are clearly visible, then in the United States, the wave is the only one that began in March. This is already the background theme for the US dollar.

In addition, Democrats and Republicans have not been able to agree on a new package of assistance to the American economy. Let me remind you that Jerome Powell repeatedly called on Congress to quickly agree and provide all the most damaged sectors of the economy with a new package of financial assistance last week. However, Republicans are opposed to the Democrats proposal to allocate another 2-3 trillion. It should be noted that the validity of the previous assistance package expired in early August. According to the latest information, the speaker of the House of representatives Nancy Pelosi expressed her readiness to sit down again at the negotiating table. According to her, Democrats are now working on a new proposal of about $ 2.4 trillion. Thus, the Democrats refuse again and again to reduce the size of the package to the maximum of 1 trillion required by the Republicans. She added that the public will see why exactly $ 2.2 or $ 2.4 trillion in aid is needed. She also stated that President Trump, "denies the virus and his refusal to work to destroy the virus only makes the whole situation worse." It is also reported that the new package provides assistance to the unemployed, direct payments to Americans, assistance to airlines and funds for loans to small businesses. However, too much difference of opinion about the amount of aid needed could ruin the negotiations this time around.

General conclusions and recommendations:

The Euro-Dollar pair presumably completed the construction of the global wave 3 or C and the second corrective wave as part of the trend section that begins last September 1. Thus, at this moment, I'm recommending to sell the instrument with targets located near the estimated 1.1520 mark, which corresponds to 38.2% Fibonacci for each MACD signal down.