EUR/USD: wave analysis

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 is developing, within which the wave (iii) of i is forming. If the assumption is correct, the pair will grow to the levels of 1.1210–1.1251. In this scenario, critical stop loss level is 1.1103.

Main scenario

Long positions will become relevant during the correction, above the level of 1.1103 with the targets at 1.1210–1.1251. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.1111 will let the pair go down to the levels of 1.0990–1.0879.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.1134
Take Profit 1.1210, 1.1251
Stop Loss 1.1103
Key Levels 1.0879, 1.0990, 1.1103, 1.1210, 1.1251

Alternative scenario

Recommendation SELL STOP
Entry Point 1.1100
Take Profit 1.0990, 1.0879
Stop Loss 1.1160
Key Levels 1.0879, 1.0990, 1.1103, 1.1210, 1.1251