The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.0772 with a target of 1.1141 – 1.1273. A buy signal: after the level of 1.0772 is broken. Stop Loss: 1.0700; Take Profit: 1.1273.
- Alternative scenario: breakout and consolidation below the level of 1.0772 will allow the pair to continue declining to the levels of 1.0663 – 1.0500. A sell signal: after the level of 1.0772 is broken. Stop Loss: 1.0850; Take Profit: 1.0500.
Main scenario
Consider long positions from corrections above the level of 1.0772 with a target of 1.1141 – 1.1273.
Alternative scenario
Breakout and consolidation below the level of 1.0772 will allow the pair to continue declining to the levels of 1.0663 – 1.0500.
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. The third wave of smaller degree (iii) of iii is presumably developing on the H1 time frame, with a local corrective second wave ii of (iii) presumably completed as its part. If the presumption is correct, the EURUSD pair will continue to rise to the levels of 1.1141 – 1.1273. The level of 1.0772 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0663 – 1.0500.
Price chart of EURUSD in real time mode
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