EUR/USD: wave analysis 19 January 2021, 11:31

EUR/USD: wave analysis

19 January 2021, 11:31

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.2092
Take Profit	1.1976, 1.1890
Stop Loss	1.2150
Key Levels	1.1890, 1.1976, 1.2219, 1.2350, 1.2450

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2225
Take Profit	1.2350, 1.2450
Stop Loss	1.2165
Key Levels	1.1890, 1.1976, 1.2219, 1.2350, 1.2450

The pair may fall.

On the daily chart, the first wave of the higher level 1 of (3) developed, within which the fifth wave v of 1 formed. Now, a downward correction is developing as the second wave 2 of (3), within which the wave a of 2 is forming. If the assumption is correct, the pair will fall to the levels of 1.1976–1.1890. In this scenario, critical stop loss level is 1.2219.

 

Main scenario

Short positions will become relevant during the correction, below the level of 1.2219 with the targets at 1.1976–1.1890. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2219 will let the pair grow to the levels of 1.2350–1.2450.