The pair is in correction.

Assumingly, a local correction in a form of the second wave ii of 3 continues forming. Locally the first wave (a) of ii has formed and wave (b) is forming. If the assumption is correct, after the senior correction ends the pair continues growing towards 1.1850, 1.2000. A critical for this scenario is the level of 1.0804, the breakdown of which would allow the pair to fall to 1.0600, 1.0500.

Trading tips

In the short-term, buy the pair above the level of 1.1150 with the target at 1.1460. In the medium-term, wait for the correction to end and buy the pair above the level of 1.0804 (with confirming signals) with targets at 1.1850, 1.2000.

Alternative scenario

The breakdown and consolidation below the level of 1.0804 would allow the pair to fall to 1.0600, 1.0500.

EUR/USD: wave analysis

EUR/USD: wave analysis

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