The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.0950 with a growth target of 1.1300 – 1.1500. A buy signal: after the price consolidates above 1.0950. Stop Loss: below 1.0920, Take Profit: 1.1300 – 1.1500.
- Alternative scenario: breakout and consolidation below the level of 1.0950 will allow the pair to continue declining to the levels of 1.0773 – 1.0662. A sell signal: after the level of 1.0950 is broken to the downside. Stop Loss: above 1.0980, Take Profit: 1.0773 – 1.0662.
Main scenario
Consider long positions from corrections above the level of 1.0950 with a target of 1.1300 – 1.1500.
Alternative scenario
Breakout and consolidation below the level of 1.0950 will allow the pair to continue declining to the levels of 1.0773 – 1.0662.
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 developing as its part. A local correction has finished forming as wave ii of (iii), and wave iii of (iii) continues to unfold on the H1 chart. If the presumption is correct, the EURUSD pair will continue to rise to the levels of 1.1300 – 1.1500. The level of 1.0950 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0773 – 1.0662.
Price chart of EURUSD in real time mode
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