Firstly, the EUR/USD turned up in November, it recovered with a sharp reaction higher up to 1.1 resistance where pair slowed down and made some nice pullback but a sharp one. Well, after a somehow hawkish ECB event last week, the euro is coming higher once again, and it appears that the pair is tracing out a five-wave recovery from October lows, but still needs to clear out that wave (3) peak first.
If it happens, then this will be significant because it can tell us a lot about the euro trend which can change then, even on higher time frames, therefore we know in which direction we should look after any retracement. Keep in mind that the wave movement suggests that the higher degree trend is back in progress, so further upside will be expected after the setback as illustrated also on the basic chart of the wave structure below
Ideally, the pair will continue much higher in 2024, but as always, the market will see some pullbacks on the way up. Possibly a new correction can show up from around 1.11 where wave (5) of 1 can look for some resistance.
BASIC ELLIOTT WAVE STRUCTURE:
