EUR/USD: Wave analysis and forecast for 10/08/2018 – 17/08/2018
Descending trend for the pair EUR/USD continues. Estimated pivot point is at a level of 1.1530.
Main scenario: short positions will be relevant from corrections below the level of 1.1530 with a target of 1.1320 – 1.1200.
Alternative scenario: breakout and consolidation above the level of 1.1530 will allow the pair to continue rising to a level of 1.1745.
Analysis: On 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). On the 4H time frame, the downward impetus continues developing in the form of wave A of (2), with a local correction completed inside in the form of the triangular wave iv of A. Apparently, the final fifth wave v of A is forming on the 1H time frame with an impetus developing inside in the form of wave (iii) of v of junior level. If the presumption is correct, the pair will continue to drop to the levels 1.1320 – 1.1200. The level 1.1530 is critical in this scenario.