EUR/USD: wave analysis

The pair is in a correction, a fall is possible.

On the daily chart, the first wave of the higher level 1 of (3) develops, within which the wave iii of 1 formed. Now, a local correction is developing as the fourth wave iv of 1, within which the wave (c) of iv is forming. If the assumption is correct, the pair will fall to the levels of 1.1642–1.1472. In this scenario, critical stop loss level is 1.1903.

Main scenario

Short positions will become relevant during the correction, below the level of 1.1903 with the targets at 1.1642–1.1472. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.1903 will let the pair grow to the levels of 1.2100–1.2200.