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 the downward correction as the wave ii of 1 is ending, which has reached the correctional level of 62%. If the assumption is correct, the pair will grow within the wave iii of 1 to the levels of 1.1281–1.1403. In this scenario, critical stop loss level is 1.0878.

Main scenario

Long positions will become relevant above the level of 1.0878 with the targets at 1.1281–1.1403. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.0878 will let the pair go down to the levels of 1.0800–1.0750.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.0998
Take Profit 1.1281, 1.1403
Stop Loss 1.0878
Key Levels 1.0750, 1.0800, 1.0878, 1.1281, 1.1403

Alternative scenario

Recommendation SELL STOP
Entry Point 1.0870
Take Profit 1.0800, 1.0750
Stop Loss 1.0905
Key Levels 1.0750, 1.0800, 1.0878, 1.1281, 1.1403