EUR/USD Wave analysis and forecast for 20.01 – 27.01: The pair is likely to decline.

Estimated pivot point is at the level of 1.0718.

Our opinion: Sell the pair from correction below the level of 1.0718 with the target of 1.0500.

Alternative scenario: Breakout and consolidation of the price above the level of 1.0718 may trigger further rise in the pair up to 1.0856.

Analysis: Presumably, the formation of the upward correction as the fourth wave of the senior level, continues. Locally it seems that the wave a of 4 has completed, while the wave b of 4 is being formed. If this assumption is correct, the pair will continue to decline to 1.0500. Critical level for this scenario is 1.0718.