The article covers the following subjects:
Key takeaways
- Main scenario: consider long positions from corrections above the level of 1.0665 with a target of 1.1141 – 1.1273. A buy signal: after the level of 1.0665 is broken. Stop Loss: 1.0600, Take Profit: 1.1273.
- Alternative scenario: breakout and consolidation below the level of 1.0665 will allow the pair to continue declining to the levels of 1.0450 – 1.0217. A sell signal: after the level of 1.0665 is broken. Stop Loss: 1.0750, Take Profit: 1.0217.
Main scenario
Consider long positions from a correction above the level of 1.0665 with a target of 1.1141 – 1.1273.
Alternative scenario
Breakout and consolidation below the level of 1.0665 will allow the pair to continue declining to the levels of 1.0450 – 1.0217.
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 developing on the H1 chart, with wave i of (iii) formed as its part. If the presumption is correct, the EURUSD pair will continue to rise to the levels of 1.1141 – 1.1273 after a local correction ii of (iii) has formed. The level of 1.0665 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0450 – 1.0217.
Price chart of EURUSD in real time mode
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