EUR/USD: wave analysis

Euro Fx/U.S. Dollar FX:EURUSD

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The pair may fall.

On the 4-hour chart, a downward correction of the higher level develops as the wave 2, within which the fifth wave 5 of (C) of 2 forms. Now, the wave c of 5 of the lower level is developing, within which the wave (v) of c is forming. If the assumption is correct, the pair will fall to the levels of 1.0850–1.0800. In this scenario, critical stop loss level is 1.0997.

Main scenario

Short positions will become relevant during the correction, below the level of 1.0997 with the targets at 1.0850–1.0800. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.0997 will let the pair grow to the levels of 1.1250–1.1414.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.0952
Take Profit 1.0850, 1.0800
Stop Loss 1.0997
Key Levels 1.0800, 1.0850, 1.0997, 1.1250, 1.1414

Alternative scenario

Recommendation BUY STOP
Entry Point 1.1005
Take Profit 1.1250, 1.1414
Stop Loss 1.0925
Key Levels 1.0800, 1.0850, 1.0997, 1.1250, 1.1414

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READ  EURUSD | H1 | Technical Analysis