According to the economic calendar, the U.S. celebrates Martin Luther King Day. Thus, sharp fluctuations in the market are not expected.
EURUSD continues to form a large downward corrective trend, which takes the form of a triple zigzag W-X-Y-XX-Z. It is assumed that at the end of November 2021, the descending sub-wave Y was completed, it took the form of a simple zigzag [A]-[B]-[C].
Now we see the growth of the market in the second wave of the XX bundle, which also assumes a simple zigzag [A]-[B]-[C].
On the last section of the chart, you can see a triangular figure that formed a horizontal correction [B]. It seems that the sloping triangle (A)-(B)-(C)-(D)-(E) is already completely finished, so growth in impulse [C] is possible in the coming trading days. Perhaps the first half of this impulse has already been built.
It is likely that the growth in impulse [C] will continue to the level of 1.1600. At this level, the magnitude of the XX bundle wave will be 38.2% along the Fibonacci lines of the Y wave.
In the current situation, it is recommended to consider opening buy trades in order to take profit at the specified level.
Investment decisions: buy 1.1405, take profit 1.1600.
The material has been provided by InstaForex Company – www.instaforex.com