Main scenario: consider long positions from corrections above the level of 1.0612 with a target of 1.0978 – 1.1141.
Alternative scenario: breakout and consolidation below the level of 1.0612 will allow the pair to continue declining to the levels of 1.0450 – 1.0217.
Analysis: an ascending wave B is presumably developing on the daily chart, with the first wave 1 of (A) of B and the corrective second wave 2 of (A) of B formed as its parts. Apparently, the third wave 3 of (A) of B is developing on the H4 time frame, within which the bearish corrective wave ii of 3 is completed and wave iii of 3 of (A) is forming. The H1 time frame shows that the first counter-trend wave of smaller degree (i) of iii is formed and a local correction has presumably developed as the second wave (ii) of iii. If this assumption is correct, the EURUSD pair will continue to rise in wave (iii) of iii to 1.0978 – 1.1141. The level of 1.0612 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0450 – 1.0217.
Price chart of EURUSD in real time mode
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