The wave marking of the upward trend has taken a completed five-wave form. Thus, the current wave marking implies the construction of a new downward trend section. If so, the pair may decline to the levels around the 19 and 18 patterns. However, do not forget that in recent months, demand for the US dollar has been extremely low, so the upward trend may well resume and become more complicated.

The wave marking of a smaller scale also indicates the completion of the upward trend channel. The estimated wave 5 in 5 is finished. If it breaks the low of wave 4, it may build a three-wave downtrend. So far, everything looks like the beginning of a new section of the trend. I expect a further decline in the pair.

On top of that, there is no significant news for the EUR/USD pair that may somehow affect its movements. Maybe investors are waiting for only one event. They want the era of Donald Trump to end as soon as possible. So, everyone is expecting Joe Biden's inauguration. It is scheduled for tomorrow. Despite the fact that nothing peculiar will happen on Inauguration Day, traders are still a little nervous. Yet, it does not have an impact on the movements of the quote. Nevertheless, many investors feel some kind of uneasiness. For this, we need to thank Donald Trump, who fueled the mob of the Capitol on January 6. Now Washington is under close surveillance of the military. Notably, all these events have no effect on the movement of the instrument. Many investors are now trying to figure out whether it makes sense to buy the euro again? Discussions about the state of the American economy never stop. There are always experts who make grim predictions for the US economy due to growing public debt and budget deficit. However, the US is still a world power. Besides, the government is not so concerned about the growing public debt as it is sure that it can be dealt with. However, why has the US dollar been falling in recent months, especially at a time when it is very unfavorable for the European Central Bank? Christine Lagarde, who usually does not comment on the euro exchange rate, has changed this rule and said that the current rate is may have a negative impact on inflation and exports. It seems that the ECB did not conduct any interventions, otherwise the US dollar would not have continued to grow steadily. The reason why it is better to wait for the completion of the euro increase is wave marking. Now it indicates the beginning of a new downward section of the trend. However, I draw attention to the fact that it is not the wave markup that drives the market, but the big players, central banks, and so on. The US government, for example, intends to inject trillion dollars into the economy. So, the Fed will again print more money. Thus, the US currency may resume its downward movement.

Recommendations:

The EUR/USD pair presumably completed the construction of an upward trend section. Thus, at this time, I recommend opening short deals on the pair with targets located around 20 and 19 patterns for each new downside signal of the MACD indicator. It does not look like a simple correction wave but like the end of the upward trend section. Therefore, several waves down are likely to appear.