The article covers the following subjects:
Key takeaways
- Main scenario: consider long positions from a correction above the level of 1.0665 with a target of 1.0977 – 1.1141. A buy signal: after the level of 1.0665 is broken. Stop Loss: 1.0612, Take Profit: 1.1141.
- Alternative scenario: breakout and consolidation below the level of 1.0665 will allow the pair to continue declining to the levels of 1.0450 – 1.0217. A sell signal: after the level of 1.0665 is broken. Stop Loss: 1.0720, Take Profit: 1.0217.
Main scenario
Consider long positions from a correction above the level of 1.0665 with a target of 1.0977 – 1.1141.
Alternative scenario
Breakout and consolidation below the level of 1.0665 will allow the pair to continue declining to the levels of 1.0450 – 1.0217.
Analysis
A bullish wave B is presumably unfolding on the daily chart, with the first wave 1 of (A) of B and a 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 formed on the H1 time frame as the second wave of smaller degree (ii) of iii, and wave (iii) of iii started developing. If the presumption is correct, the EUR/USD pair will continue to rise to the levels of 1.0978 – 1.1141. The level of 1.0612 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0450 – 1.0217.
Price chart of EURUSD in real time mode
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