A Bearish correction continues.

The pair has continued declining and hit new local lows at 1.0890.Assumingly, a correction as the second wave 2 of the senior level continues and is transforming from flat abc into double zigzag wxy. Locally, a zigzag in wave y of 2 is likely to be forming. If the assumption is correct, when the zigzag finishes, a growth to the level of 1.1500 is expected. A critical for this scenario is the level of 1.0450.

Trading tips

Wait for wave (c) to finish and a starting impetus to form, and buy the pair during the correction with the target at 1.1500.

Alternative scenario

The consolidation below the level of 1.0800 would allow the pair to continue declining to 1.0700 and 1.0600.

EUR/USD: wave analysis

EUR/USD: wave analysis

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