EUR/USD: wave analysis

The correction ends, the pair may grow.

On the 4-hour chart, a downward correction of the higher level developed as the wave 2, within which the fifth wave 5 of (C) of 2 formed. Now, the first wave of the lower level i of 1 of (1) of 3 has formed, and the development of a downward correction as the wave ii of 1 is ending, which has reached the correctional level of 50%. If the assumption is correct, the pair will grow to the levels of 1.1281–1.1403. In this scenario, critical stop loss level is 1.0993.

Main scenario

Long positions will become relevant above the level of 1.0993 with the targets at 1.1281–1.1403. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.0993 will let the pair go down to the levels of 1.0940–1.0880.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.1022
Take Profit 1.1281, 1.1403
Stop Loss 1.0935
Key Levels 1.0880, 1.0940, 1.0993, 1.1281, 1.1403

Alternative scenario

Recommendation SELL STOP
Entry Point 1.0990
Take Profit 1.0940, 1.0880
Stop Loss 1.1020
Key Levels 1.0880, 1.0940, 1.0993, 1.1281, 1.1403