The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.0662 with a growth target of 1.1141 – 1.1273. A buy signal: above the level of 1.0662. Stop Loss: below 1.0640, Take Profit: 1.1141 – 1.1273.
- Alternative scenario: breakout and consolidation below the level of 1.0662 will allow the pair to continue declining to the levels of 1.0515 – 1.0426. A sell signal: after the level of 1.0662 is broken to the downside. Stop Loss: above 1.0680, Take Profit: 1.0515 – 1.0426.
Main scenario
Consider long positions above the level of 1.0662 with a target of 1.1141 – 1.1273 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 1.0662 will allow the pair to continue declining to the levels of 1.0515 – 1.0426.
Analysis
A bullish wave B is presumably unfolding on the daily chart, with first wave 1 of (A) of B and corrective second wave 2 of (A) of B formed as its parts. Apparently, the third wave 3 of (A) of B is developing on the H4 time frame, within which a descending corrective wave (ii) of 3 is completed and wave (iii) of 3 of (A) is forming. A local correction is nearing completion as the second wave of smaller degree ii of (iii) on the H1 chart. If this assumption is correct, the EURUSD pair will continue to rise to the levels 1.1141 – 1.1273 once the correction’s over. The level of 1.0662 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0515 – 1.0426.
Price chart of EURUSD in real time mode
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