The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 1.0703 with a target of 1.0193 – 1.0000. A sell signal: the price holds below 1.0703. Stop Loss: above 1.0730, Take Profit: 1.0193 – 1.0000.
- Alternative scenario: Breakout and consolidation above the level of 1.0703 will allow the pair to continue rising to the levels of 1.0790 – 1.0940. A buy signal: the level of 1.0703 is broken to the upside. Stop Loss: below 1.0680, Take Profit: 1.0790 – 1.0940.
Main Scenario
Consider short positions below the level of 1.0703 with a target of 1.0193 – 1.0000 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 1.0703 will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
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) continues developing on the H4 time frame. The H1 time frame shows that wave iii of C is formed and a local corrective wave iv of C is nearing completion. If this presumption is correct, the EUR/USD pair will continue dropping to 1.0193 – 1.0000 after correction. The level of 1.0703 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
Price chart of EURUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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