EUR/USD wave analysis and forecast for 05.01 – 12.01

Estimated pivot point is at a level of 1.2090. 

Main scenario: short positions will be relevant from corrections below the level of 1.2090  with a target of 1.1947 – 1.1903.

Alternative scenario:  breakout and consolidation above level 1.2090  will allow the pair to continue rise to the level of 1.2230.

Analysis: supposedly, the fifth wave 5 in the form of diagonal triangle continues forming inside the first wave 1 of senior level within 4-hour timeframe. Apparently, the third wave iii of 5 has completed forming and wave iv of 5 is starting to form. If the presumption is correct, the pair will continue to drop to the levels of 1.1947 – 1.1903. The level 1.2090 is critical in this scenario.