Forex Analysis & Reviews: EUR/USD. Analysis for December 3, 2022
time 03.12.2022 02:46 PM
time Relevance up to, 04.12.2022 01:15 PM

This image is no longer relevant

The wave marking on the euro/dollar instrument's 4-hour chart still appears quite accurate. However, the entire upward portion of the trend is starting to get more complicated. It has already assumed a clear corrective and somewhat prolonged form. A-b-c-d-e waves have a complex correction structure that we have discovered. Since wave e is much higher than the peak of wave C, if the wave markings are accurate, construction on this structure may be nearly finished. In this instance, it is anticipated that we will construct at least three waves downward, but if the most recent phase of the trend is corrective, the subsequent phase will probably be impulsive. Therefore, I am preparing for a new, significant decline in the instrument. The market will be ready to sell when a new attempt to breach the 1.0359 level, which corresponds to 261.8% Fibonacci, is successful. On the other hand, the retraction of quotes from reaching lows this week suggests that the entire wave may end up longer and that the instrument's most recent decline is not the first wave of a new descending section. Consequently, the scenario involving the first two waves of a new downward trend segment is rejected. Because there isn't an increase in demand for US currency, the wave pattern is generally starting to become muddled.

The demand for the dollar has risen, but only momentarily.

On Friday, the euro/dollar instrument increased by ten basis points. This number in no way represents the state of the market on Friday. During the day, the instrument fell by 100 basis points before rising by the same amount. Naturally, the decline was brought on by American statistics. The total number of nonfarm payrolls came in at 263,000, exceeding market expectations by 60,000. Remember that the ADP report, released earlier this week, indicated that only 129 000 jobs would be created outside the agricultural sector. The market has recently decreased demand for US dollars because it anticipated that the Payrolls report would also be weak. But as it turned out on Friday, the release of the Payrolls report didn't affect anything. Its value turned out to be higher than anticipated. Still, the demand for the dollar only rose for a short time (about an hour) before the market started to reduce it again, which caused the instrument's overall value to increase.

What is happening with the US currency now cannot be expressed in words. It would be possible to comprehend why the dollar declined on Friday if additional US reports proved weak. Although the unemployment rate remained unchanged in November at 3.7%, average wages increased more than the market anticipated. Therefore, all three American reports exceeded expectations, so a few hours after their release, demand for US currency started to decline. This inquiry is especially pertinent if we remember that the wave markings advocated constructing at least one more downward wave. In other words, almost all of Friday's arguments favored lowering the instrument, but the day ended with a raise, further complicating the overall wave picture. We could now face endless complications from the trend segment already ascending.

This image is no longer relevant

Conclusions in general

I conclude that the upward trend section's construction is complete and has increased complexity to five waves. As a result, given that the MACD is signaling "down," I advise selling with targets close to the estimated 0.9994 level, which corresponds to a 323.6% Fibonacci ratio. The trend's upward portion could become more complicated and take on a longer form, and the likelihood of this happening is increasing daily.

The wave marking of the descending trend segment becomes more intricate and lengthens at the higher wave scale. The a-b-c-d-e structure is most likely represented by the five upward waves we observed. After the construction of this section is finished, work on a downward trend section may resume.

Chin Zhao,
Analytical expert of InstaForex
© 2007-2023
Euro vs US Dollar
Select timeframe
Start trade
Start trade

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.

  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

GBP/USD. Analysis for January 31, 2023

The pound/dollar exchange rate has been moving recently with horizontal dynamics. Since quotes are still close to the peaks of waves b and e, there is nothing to say regarding

Chin Zhao 08:29 2023-01-31 UTC+2

EUR/USD. Analysis for January 31. The dollar is anticipating "hawkish" Fed signals.

The wave analysis of the euro/dollar pair's 4-hour chart hasn't changed much recently and is still complex. Although its amplitude is more appropriate for the impulse section of the trend

Chin Zhao 08:05 2023-01-31 UTC+2

Elliott wave analysis of EUR/USD for January 31, 2023

EUR/USD is again testing support at 1.0835. A break below here will confirm that wave B is complete and wave C lower to the ideal target area between 1.0437

Torben Melsted 05:59 2023-01-31 UTC+2

GBP/USD. Analysis for January 30, 2023

The wave analysis for the pound/dollar pair now appears rather complex, doesn't call for any clarifications, but starts to diverge significantly from the analysis of the euro/dollar pair. Our five-wave

Chin Zhao 15:51 2023-01-30 UTC+2

EUR/USD. Analysis for January 30. The week began quietly, and the most interesting events are yet to come.

The wave analysis for the euro/dollar pair on the 4-hour chart has not yet changed and is still complex. The upward section of the trend has taken on a pronounced

Chin Zhao 15:28 2023-01-30 UTC+2

GBP/USD, AUD/USD, USD/CHF, EUR/JPY, USDX weekly simplified wave analysis on January 30, 2023

In the coming days, the pound is expected to trade sideways along the support zone. The second half of the week may be more volatile, and the pair may resume

Isabel Clark 08:38 2023-01-30 UTC+2

Elliott wave analysis of USD/SGD for January 30, 2023

It has been a couple of weeks since we saw USD/SGD break below the S/H/S top neckline near 1.3256. With this break, the S/H/S top was activated for a decline

Torben Melsted 07:43 2023-01-30 UTC+2

Elliott wave analysis of EUR/USD for January 30, 2023

EUR/USD traded in a very narrow range between 1.0835 - 1.0900 last week, but it should just be a matter of time before support at 1.0835 breaks and confirms that

Torben Melsted 07:35 2023-01-30 UTC+2

EUR/USD. Analysis for January 28, 2023

The euro/dollar instrument's 4-hour wave marking hasn't changed much recently and is still getting more intricate, and the entire upward component of the trend is still being stretched

Chin Zhao 17:40 2023-01-28 UTC+2

Elliott wave analysis of Tesla for January 27, 2023

As we said yesterday, it was possible that Tesla would move closer to resistance near 169 before topping and that's exactly what we now are seeing about Tesla. Despite

Torben Melsted 07:00 2023-01-27 UTC+2
Can't speak right now?
Ask your question in the chat.