The article covers the following subjects:
Highlights and key points
- Main scenario: once the correction ends, consider long positions above the level of 1.0773 with a target of 1.1400 – 1.1600. A buy signal: if the price holds above 1.0773. Stop Loss: below 1.0700, Take Profit: 1.1400 – 1.1600.
- Alternative scenario: breakout and consolidation below the level of 1.0773 will allow the pair to continue declining to the levels of 1.0594 – 1.0440. A sell signal: once the level of 1.0773 is broken to the downside. Stop Loss: above 1.0850, Take Profit: 1.0594 – 1.0440.
Main scenario
Consider long positions above the level of 1.0773 with a target of 1.1400 – 1.1600 once the correction is formed.
Alternative scenario
Breakout and consolidation below the level of 1.0773 will allow the pair to continue declining to the levels of 1.0594 – 1.0440.
Analysis
A bullish wave B is presumably developing on the daily time frame, with the third wave 3 of (A) of B unfolding as its part. The third wave of smaller degree iii of 3 of (A) appears to be forming on the H4 time frame, with wave (iii) of iii continuing developing as its part. On the H1 chart, wave iii of (iii) is formed, and a local correction is nearing completion as wave iv of iii. If the presumption is correct, the EURUSD pair will continue to rise to the levels of 1.1400 – 1.1600 after the correction ends. The level of 1.0773 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0594 – 1.0440.
Price chart of EURUSD in real time mode
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