The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0425 with a target of 0.9950 – 0.9526. A sell signal: the price holds below 1.0425. Stop Loss: above 1.0475, Take Profit: 0.9950 – 0.9526.
- Alternative scenario: Breakout and consolidation above the level of 1.0425 will allow the pair to continue rising to the levels of 1.0940 – 1.1224. A buy signal: the level of 1.0425 is broken to the upside. Stop Loss: below 1.0370, Take Profit: 1.0940 – 1.1224.
Main Scenario
Consider short positions from corrections below the level of 1.0425 with a target of 0.9950 – 0.9526.
Alternative Scenario
Breakout and consolidation above the level of 1.0425 will allow the pair to continue rising to the levels of 1.0940 – 1.1224.
Analysis
The ascending first wave of larger degree (1) is formed on the daily chart, and the bearish correction continues developing as the second wave (2). Apparently, wave С of (2) is developing on the H4 time frame, within which the fifth wave of smaller degree v of C continues forming. Wave (iii) of v of C is developing on the H1 chart. If the presumption is correct, the EUR/USD pair will continue falling to 0.9950 – 0.9526. The level of 1.0425 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0940 – 1.1224.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of EURUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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