EURUSD Wave analysis and forecast of 08.08 – 15.08: The pair is undergoing correction. Downtrend dominates.

Estimated pivot point is at the level of 1.3450.

Our opinion: In the short-term: sell the pair from correction above the level of 1.3330 with the target o 1.3450. In the medium-term: sell the pair from correction below the level of 1.3450 with the target of 1.32. 

Alternative scenario: Breakout of the level of 1.3450 will allow the price to continue the rise up to the levels of 1.3500 – 1.3550.

Analysis: Presumably, the formation the third wave (iii) of the bearish momentum has completed. Locally the formation of the fourth wave has begun (iv). If this assumption is correct, after its completion the pair will continue to decline to 1.32.