EUR/USD: wave analysis

The pair is in a correction, a fall is possible.

On the 4-hour chart, a downward correction of the higher level developed as the wave 2, within which the fifth wave 5 of (C) of 2 formed. Now, the first wave of the lower level i of 1 of (1) of 3 has formed, and a downward correction is developing as the wave ii of 1. If the assumption is correct, the pair will fall to the levels of 1.1028–1.0990. In this scenario, critical stop loss level is 1.1163.

Main scenario

Short positions will become relevant during the correction, below the level of 1.1163 with the targets at 1.1028–1.0990. Implementation period: 5–7 days.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.1163 will let the pair grow to the levels of 1.1281–1.1403.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.1090
Take Profit 1.1028, 1.0990
Stop Loss 1.1140
Key Levels 1.1163, 1.0990, 1.1028, 1.1281, 1.1403

Alternative scenario

Recommendation BUY STOP
Entry Point 1.1170
Take Profit 1.1281, 1.1403
Stop Loss 1.1110
Key Levels 1.1163, 1.0990, 1.1028, 1.1281, 1.1403