EUR/USD: Wave analysis and forecast for 17/08/2018 – 24/08/2018

The pair EUR/USD is likely to grow. Estimated pivot point is at a level of 1.1300.

Main scenario: long positions will be relevant from corrections above the level of 1.1300 with a target of 1.1625.

Alternative scenario: Breakout and consolidation below the level of 1.1300 will allow the pair to continue declining to the levels of 1.1250 – 1.1200.

Analysis: In the daily time frame, an upward impetus is formed as the first wave of senior level (1) and a downward correction continues forming as wave (2). Supposedly, a descending impetus in the form of the wave А of (2) finished developing on the 4-hour time frame. Apparently, the pair may be going to reverse into the wave B of (2) and the first counter-trend wave of junior level i of (i) has been formed on the 1H time frame. If the presumption is correct, the pair will logically rise to a level of 1.1625. The level 1.1300 is critical in this scenario.