The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.0210 with a target of 1.0635 – 1.0940. A buy signal: the price holds above 1.0210. Stop Loss: below 1.0150, Take Profit: 1.0635 – 1.0940.
- Alternative scenario: Breakout and consolidation below the level of 1.0210 will allow the pair to continue declining to the levels of 0.9950 – 0.9800. A sell signal: the level of 1.0210 is broken to the downside. Stop Loss: above 1.0250, Take Profit: 0.9950 – 0.9800.
Main Scenario
Consider long positions from corrections above the level of 1.0210 with a target of 1.0635 – 1.0940.
Alternative Scenario
Breakdown and consolidation below a level of 1.0210 will allow the pair to continue declining to the levels 0.9950 – 0.9800.
Analysis
The ascending first wave of larger degree (1) has formed on the daily chart, and the bearish correction appears to have completed as the second wave (2). Apparently, wave С of (2) has finished developing, and the third wave of larger degree (3) has started forming on the H4 chart. On the H1 time frame, the first counter-trend wave of smaller degree (i) of i of 1 of (3) is likely formed, the local correction is complete in the form of the second wave (ii) of i of 1 of (3), and the third wave (iii) of i of 1 of (3) has started developing. If the presumption is correct, the EUR/USD pair will continue to rise to 1.0635 – 1.0940. The level of 1.0210 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 0.9950 – 0.9800.
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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