The EUR/USD pair is trading within the downtrend for the third month in a row and is currently trying to consolidate below 1.0376 (Murray level [1/8]). This price movement is mainly due to monetary factors and the prospects for divergence of monetary policy vectors between the European Central Bank (ECB) and the US Federal Reserve.

The EUR/USD pair is moving in a correction trend at 1.0375 amid a strengthening American dollar and increased expectations of further interest rate cuts by the European Central Bank (ECB) after the inflation rate slowed.

During the Asian session, the EUR/USD pair shows a slight increase in the area of 1.0505, correcting after the decline the day before, as a result of which the euro retreated from the local highs of December 11. 

A fall is possible.

On the daily chart, the first wave of the higher level 1 of (A) of B formed, and a correction develops as the second wave 2 of (A) of B. Now, the downward wave c of 2 develops, within which the third wave of the lower level (iii) of c has ended, a correction has formed as the wave (iv) of c, and the wave (v) of c is developing. If the assumption is correct, the EUR/USD pair will fall to the area of 1.0200–0.9953. In this scenario, critical stop loss level is 1.0630.

During the Asian session, the EUR/USD pair added 0.12%, reaching 1.0515, continuing its upward trend after the decision of the European Central Bank (ECB) to adjust the interest rate by –25 basis points to 3.15%.