EUR/USD: wave analysis

The pair can fall.

On the 4-hour chart, the downward momentum of the higher level A of (2) is forming. Now the local correction has developed as a fourth wave of the lower level iv of A, and the formation of the first wave of the lower level (i) of v has begun. If the assumption is correct, the pair may fall to the levels of 1.1439–1.1320. The level of 1.1745 is critical and stop loss for this scenario.

Main scenario

Short positions may become relevant during the correction, below the level of 1.1745 with the targets at 1.1439–1.1320. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.1745 may let the pair grow to the levels of 1.1900–1.2000.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.1641
Take Profit 1.1439, 1.1320
Stop Loss 1.1745
Key Levels 1.1320, 1.1439, 1.1745, 1.1900, 1.2000

Alternative scenario

Recommendation BUY STOP
Entry Point 1.1750
Take Profit 1.1900, 1.2000
Stop Loss 1.1700
Key Levels 1.1320, 1.1439, 1.1745, 1.1900, 1.2000