EUR/USD: Wave analysis and forecast of 16.05 – 23.05: The pair is likely to decline. Estimated pivot point is at the level of 1.3993.

Our opinion: In the short-term: buy the pair above the level of 1.3645 with the target of 1.3820. In the medium-term: wait for the completion of the correction and sell below the level of 1.3993 with the target of 1.35 – 1.3477.

Alternative scenario: Breakout of the level of 1.3993 will enable the price to continue growth to the level of 1.41.

Analysis: Presumably, the formation of the in-lead momentum as the first wave has completed. Locally, the pair may experience upward correction in the second wave to the levels of 50% – 1.3820. If this assumption is correct, following the completion of the local correction, the pair will continue to decline to the levels of 1.35 – 1.3470. Critical level for this scenario is 1.3993.