The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.0530 with a target of 1.1200 – 1.1400. A buy signal: the price holds above 1.0530. Stop Loss: below 1.0480, Take Profit: 1.1200 – 1.1400.
- Alternative scenario: Breakout and consolidation below the level of 1.0530 will allow the pair to continue declining to the levels of 1.0195 – 0.9950. A sell signal: the level of 1.0530 is broken to the downside. Stop Loss: above 1.0580, Take Profit: 1.0195 – 0.9950.
Main Scenario
Consider long positions from corrections above the level of 1.0530 with a target of 1.1200 – 1.1400.
Alternative Scenario
Breakout and consolidation below the level of 1.0530 will allow the pair to continue declining to the levels of 1.0195 – 0.9950.
Analysis
The ascending first wave of the larger degree (1) has formed on the daily chart, and the bearish correction appears to have completed as the second wave (2). Wave С of (2) is likely formed on the H4 time frame, and the third wave of larger degree (3) has started unfolding, with the first counter-trend wave of smaller degree i of 1 of (3) forming as its part. Wave (iii) of i of 1 of (3) continues developing on the H1 chart, with wave iii of (iii) completed as its part. If the presumption is correct, the EUR/USD pair will continue to grow to the levels of 1.1200 – 1.1400 once the local corrective wave iv of (iii) is formed. The level of 1.0530 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0195 – 0.9950.
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
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