The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0946 with a target of 1.0605 – 1.0400. A sell signal: the price holds below 1.0946. Stop Loss: above 1.0980, Take Profit: 1.0605 – 1.0400.
- Alternative scenario: Breakout and consolidation above the level of 1.0946 will allow the pair to continue rising to the levels of 1.1043 – 1.1210. A buy signal: the level of 1.0946 is broken to the upside. Stop Loss: below 1.0990, Take Profit: 1.1043 – 1.1210.
Main Scenario
Consider short positions from corrections below the level of 1.0946 with a target of 1.0605 – 1.0400.
Alternative Scenario
Breakout and consolidation above the level of 1.0946 will allow the pair to continue rising to the levels of 1.1043 – 1.1210.
Analysis
The ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave (2). Apparently, wave В of (2) has formed and wave С of (2) is developing on the H4 time frame. The first wave of smaller degree i of C is completed, a local correction has developed as wave ii of C, and the third wave iii of C has started unfolding on the H1 chart. If this assumption is correct, the EURUSD pair will continue to fall to 1.0605 – 1.0400. The level of 1.0946 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.1043 – 1.1210.
Price chart of EURUSD in real time mode
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