The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions on corrections above the level of 1.1100 with a growth target of 1.1400 – 1.1600. A buy signal: if the price holds above 1.1100. Stop Loss: below 1.1050, Take Profit: 1.1400 – 1.1600.
- Alternative scenario: breakout and consolidation below the level of 1.1100 will allow the pair to continue declining to the levels of 1.0880 – 1.0773. A sell signal: once the level of 1.1100 is broken to the downside. Stop Loss: above 1.1150, Take Profit: 1.0880 – 1.0773.
Main scenario
Consider long positions on corrections above the level of 1.1100 with a target of 1.1400 – 1.1600.
Alternative scenario
Breakout and consolidation below the level of 1.1100 will allow the pair to continue declining to the levels of 1.0880 – 1.0773.
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. Wave iii of (iii) continues to develop on the H1 time frame, with wave v of iii unfolding as its part. If this assumption is correct, the EURUSD pair will continue to rise to 1.1400 – 1.1600. The level of 1.1100 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0880 – 1.0773.
Price chart of EURUSD in real time mode
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