Main scenario: consider long positions from corrections above the level of 1.0788 with a target of 1.0978 – 1.1141.
Alternative scenario: breakout and consolidation below the level of 1.0788 will allow the pair to continue declining to the levels of 1.0720 – 1.0591.
Analysis: an ascending wave B is presumably developing on the daily chart, with first wave 1 of (A) of B and corrective second wave 2 of (A) of B formed within. Apparently, the third wave 3 of (A) of B is developing on the H4 time frame, with bearish corrective wave ii of 3 completed as its part, and wave iii of 3 of (A) forming. The first counter-trend wave of smaller degree (i) of iii continues developing on the H1 time frame, with a local corrective wave iv of (i) completed and wave v of (i) unfolding as its parts. If this assumption is correct, the EURUSD pair will continue to rise to 1.0978 – 1.1141 once the correction is completed. The level of 1.0788 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0720 – 1.0591.
Price chart of EURUSD in real time mode
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