EUR/USD: wave analysis

The pair may fall.

On the daily chart, a downward correction of the higher level forms as the wave (2), within which the wave C of (2) develops. Now the third wave of the lower level iii of C is forming. If the assumption is correct, the pair will fall to the levels of 1.1120–1.1000. In this scenario, critical stop loss level is 1.1419.

Main scenario

Short positions will become relevant during the correction, below the level of 1.1419 with the targets at 1.1120–1.1000. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.1419 will let the pair grow to the levels of 1.1512–1.1572.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.1306
Take Profit 1.1120, 1.1000
Stop Loss 1.1419
Key Levels 1.1000, 1.1120, 1.1419, 1.1512, 1.1572

Alternative scenario

Recommendation BUY STOP
Entry Point 1.1425
Take Profit 1.1512, 1.1572
Stop Loss 1.1365
Key Levels 1.1000, 1.1120, 1.1419, 1.1512, 1.1572