EUR/USD. Growth in the second wave of an emerging downward impulse. | 04 January 2024

The euro's value declined and hit a local minimum, likely forming a descending impulse easily identifiable on the chart. Subsequently, there was an attempt at an upward movement, initiating a correction. All of this currently appears to be the development of wave i in an emerging larger downward impulse or a significant correction, with the corrective rise currently considered as wave ii. Therefore, in the near future, we may witness further development of the correction, driven by the formation of wave ii, roughly as schematically indicated on the provided chart. Since the upward movement is expected to be quite substantial, it makes sense to consider opportunities for entering long positions.

Investment idea: Buy at 1.0935, stop loss at 1.0900, take profit at 1.1000.