The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0536 with a target of 1.0193 – 1.0000. A sell signal: the price holds below 1.0536. Stop Loss: above 1.0565, Take Profit: 1.0193 – 1.0000.
- Alternative scenario: Breakout and consolidation above the level of 1.0536 will allow the pair to continue rising to the levels of 1.0790 – 1.0940. A buy signal: the level of 1.0536 is broken to the upside. Stop Loss: below 1.0510, Take Profit: 1.0790 – 1.0940.
Main Scenario
Consider short positions from corrections below the level of 1.0536 with a target of 1.0193 – 1.0000.
Alternative Scenario
Breakout and consolidation above the level of 1.0536 will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
Analysis
An 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) continues developing on the H4 time frame. On the H1 time frame, a local correction is completed as wave iv of C. Wave v of C is forming now, with wave (iii) of v unfolding as its part. If the presumption is correct, EURUSD will continue to drop to the levels of 1.0193 – 1.0000. The level of 1.0536 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
Price chart of EURUSD in real time mode
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