The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0620 with a target of 1.0193 – 1.0000. A sell signal: the price holds below 1.0620. Stop Loss: above 1.0650, Take Profit: 1.0193 – 1.0000.
- Alternative scenario: Breakout and consolidation above the level of 1.0620 will allow the pair to continue rising to the levels of 1.0790 – 1.0940. A buy signal: the level of 1.0620 is broken to the upside. Stop Loss: below 1.0590, Take Profit: 1.0790 – 1.0940.
Main Scenario
Consider short positions from corrections below the level of 1.0620 with a target of 1.0193 – 1.0000.
Alternative Scenario
Breakout and consolidation above the level of 1.0620 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. Wave iii of C and a local corrective wave iv of C are formed on the H1 chart, while wave v of C is developing. If this assumption is correct, the EUR/USD pair will continue to fall to 1.0193 – 1.0000. The level of 1.0620 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
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