EUR/USD: wave analysis

The pair is in a correction and can grow.

On the 4-hour chart, the downward momentum of the higher level is forming as a wave A of (2). Now the local correction is developing as a fourth wave of the lower level iv of A, within which the wave (c) of iv is forming. If the assumption is correct, the pair will grow to the levels of 1.1877–1.1990. The level of 1.1592 is critical and stop-loss for this scenario.

Main scenario

Long positions will become relevant during the correction, above the level of 1.1592 with the targets at 1.1877–1.1990. Implementation period: 5–7 days.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.1592 will let the pair go down to the levels of 1.1440–1.1320.

Trade

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.1771
Take Profit 1.1877, 1.1990
Stop Loss 1.1710
Key Levels 1.1320, 1.1440, 1.1592, 1.1877, 1.1990

Alternative scenario

Recommendation SELL STOP
Entry Point 1.1585
Take Profit 1.1440, 1.1320
Stop Loss 1.1645
Key Levels 1.1320, 1.1440, 1.1592, 1.1877, 1.1990