EUR/USD: wave analysis 22 February 2021, 10:09

EUR/USD: wave analysis

22 February 2021, 10:09

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.2120
Take Profit	1.1880, 1.1684
Stop Loss	1.2350
Key Levels	1.1684, 1.1880, 1.2350, 1.2450, 1.2600

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2355
Take Profit	1.2450, 1.2600
Stop Loss	1.2300
Key Levels	1.1684, 1.1880, 1.2350, 1.2450, 1.2600

The pair is in a correction, a fall is possible.

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 has formed, and a local correction is developing as the wave b of 2. If the assumption is correct, after the end of the correction, the pair will fall to the levels of 1.1880–1.1684. In this scenario, critical stop loss level is 1.2350.

Main scenario

Short positions will become relevant after the end of the correction, below the level of 1.2350 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 1.2350 will let the pair grow to the levels of 1.2450–1.2600.