EUR/USD: wave analysis

The pair can fall.

On the 4-hour chart, the downward momentum of the higher level is forming as a wave A of (2). Now the fifth wave of the lower level v of A is developing, within which the local correction (ii) of v has ended, and the wave (iii) of v is forming. If the assumption is correct, the pair will fall to the levels of 1.1439–1.1320. The level of 1.1720 is critical and stop-loss for this scenario.

Main scenario

Short positions will become relevant during the correction, below the level of 1.1720 with the targets at 1.1439–1.1320. Implementation period: 5–7 days.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.1720 will let the pair grow to the levels of 1.1850–1.1991.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.1643
Take Profit 1.1439, 1.1320
Stop Loss 1.1720
Key Levels 1.1320, 1.1439, 1.1720, 1.1850, 1.1991

Alternative scenario

Recommendation BUY STOP
Entry Point 1.1725
Take Profit 1.1850, 1.1991
Stop Loss 1.1685
Key Levels 1.1320, 1.1439, 1.1720, 1.1850, 1.1991