The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0620 with a target of 1.0400 – 1.0193. A sell signal: the price holds below 1.0620. Stop Loss: above 1.0650, Take Profit: 1.0400 – 1.0193.
- Alternative scenario: Breakout and consolidation above the level of 1.0620 will allow the pair to continue rising to the levels of 1.0832 – 1.1043. A buy signal: the level of 1.0620 is broken to the upside. Stop Loss: below 1.0590, Take Profit: 1.0832 – 1.1043.
Main Scenario
Consider short positions from corrections below the level of 1.0620 with a target of 1.0400 – 1.0193.
Alternative Scenario
Breakout and consolidation above the level of 1.0620 will allow the pair to continue rising to the levels of 1.0832 – 1.1043.
Analysis
An ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave (2). Apparently, wave В of (2) has formed and wave С of (2) is developing on the H4 time frame. Wave iii of C continues developing on the H1 time frame, with wave (v) of iii forming as its part. If the presumption is correct, EURUSD will continue to drop to the levels of 1.0400 – 1.0193. The level of 1.0620 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0832 – 1.1043.
Price chart of EURUSD in real time mode
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