EURUSD: Elliott wave analysis and forecast for 20.05.2022 – 27.05.2022

Main scenario: consider short positions after completion of the correction below the level of 1.0765 with a target of 1.0000 – 0.9480.

Alternative scenario: breakout and consolidation above the level of 1.0765 will allow the pair to continue rising to the levels of 1.0937 – 1.1184.

Analysis: Apparently, a bearish correction continues developing in the weekly chart as a wave of larger degree B, which is forming as triple zigzag (W)-(X)-(Y)-(X)-(Z). Wave (Z) of B appears to be unfolding in the daily chart, with wave С of (Z) developing as its part. The fifth wave of smaller degree v of C is forming in the H4 chart, with wave (iii) of v presumably unfolding as its part. If the presumption is correct, after its completion the pair will continue to drop to the levels of 1.0000 – 0.9480. The level of 1.0765 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0937 – 1.1184.

Price chart of EURUSD in real time mode

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