Forex Analysis & Reviews: 01.12.2021 - EUR /USD analysis on...

Live Chat

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

01.12.2021 08:21 AM

EUR /USD analysis on November 30, 2021. Inflation in Europe accelerating.

Wave pattern

The wave layout for EUR/USD on the 4-hour chart remains complete and does not require any changes. The a-b-c-d-e section of the trend, which was formed at the very beginning of the year, should be interpreted as a wave A, and the subsequent rise in the instrument is seen as a wave B. Thus, the formation of the assumed wave C continues and can take a very extended form. Then we have an interesting situation. The rebound of the quotes from the recent lows suggests that the formation of the expected wave c in C is completed. If this is true, then a new ascending wave is being formed at the moment, presumably the wave d in C. The C wave may take a five-wave corrective structure. A successful attempt to break through the 100.0% Fibonacci level will indicate that the market is ready to go bullish on the instrument. Another scenario is possible when the C wave will take a three-wave form and turns out to be completed. In any case, quotes are expected to rise in the coming week.

Omicron high on the agenda but inflation is also in focus

The news background for EUR/USD was rather weak on Tuesday as only one important report was published during the day. We are talking about the eurozone inflation report for November. Just like in the US, the CPI continues to accelerate: it jumped to 4.9% in November from 4.1% in October. Thus, Christine Lagarde's fears about further inflation growth were not in vain. Still, Christine Lagarde and Jerome Powell continue to insist that inflation will decrease next year as soon as supply chains recover and energy prices stabilize. However, none of them mention the highest rate that inflation could reach before it starts to slow down. After all, this is a very important question since the US consumer price index has already hit its highest level in 31 years. The same could happen in Europe if the ECB does not reduce the PEPP stimulus program. Amid the emergence of a new virus strain last week, the central banks of the EU and the United States said that this could pose an additional threat to the global economy: it may shrink if Omicron is really as dangerous as reported. So, instead of monetary policy tightening, an opposite process may begin. It is hard to say for sure how things will develop as Omicron has just been discovered. Yet, many countries worldwide have already reported cases of the new virus infection.

Conclusion

Based on the analysis above, I can conclude that the descending C wave has been completed. However, a drop in euro quotes yesterday suggests that the assumed wave d is unlikely to continue its formation. Such sharp movements usually change the wave structure. So it is better to wait a few days to observe the behavior of markets and the instrument.

Higher time frame

The wave layout on the higher time frame looks quite convincing. The quotes continue to move lower. The descending section of the trend that was initiated on May 25 takes the form of a three-wave correctional pattern A-B-C. This means that the downtrend may continue for another month or two until the C wave is fully completed. It can have either a three- or a five-wave structure.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.