EUR/USD: wave analysis 16 February 2021, 09:38

EUR/USD: wave analysis

16 February 2021, 09:38

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.2133
Take Profit	1.1880, 1.1684
Stop Loss	1.2191
Key Levels	1.1684, 1.1880, 1.2191, 1.2350, 1.2450

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2195
Take Profit	1.2350, 1.2450
Stop Loss	1.2135
Key Levels	1.1684, 1.1880, 1.2191, 1.2350, 1.2450

The pair may fall.

On the daily chart, the first wave of the higher level 1 of (3) developed, and a downward correction forms as the second wave 2 of (3). Now, the wave a of 2 is developing, within which the third wave of the lower level (iii) of a has formed, and a local correction has developed as the wave (iv) of a. If the assumption is correct, the pair will fall to the levels of 1.1880–1.1684. In this scenario, critical stop loss level is 1.2191.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2191 with the targets at 1.1880–1.1684. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2191 will let the pair grow to the levels of 1.2350–1.2450.