EUR/USD: wave analysis and forecast for 20/07/2018 – 27/07/2018

The EUR/USD price is still likely to decline. Estimated pivot point is at a level of 1.1790.

Main scenario: short positions will be relevant from corrections above the level 1.1790 with a target of 1.1439.

Alternative scenario: Breakout and consolidation above the level of 1.1790 will allow the EUR/USD rate to continue rising towards the level of 1.1998.

Analysis: In the daily timeframe, an upward momentum is complete as the first wave of senior level (1) and a downward correction continues forming as wave (2). In the 4-hour EUR/USD price chart, a downward momentum continues developing within the wave A of (2), with a local correction emerging inside in the form of the wave iv of A, that is taking the shape of triangle. On the 1-hour time frame, apparently, the final wave (е) of iv is forming, and, if the presumption is correct, after it is complete, the EUR/USD price will continue declining towards the level of 1.1439. The level 1.1790 is critical in this scenario