The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.0280 with a target of 1.0635 – 1.0940. A buy signal: the price holds above 1.0280. Stop Loss: below 1.0220, Take Profit: 1.0635 – 1.0940.
- Alternative scenario: Breakout and consolidation below the level of 1.0280 will allow the pair to continue declining to the levels of 1.0100 – 0.9950. A sell signal: the level of 1.0280 is broken to the downside. Stop Loss: above 1.0320, Take Profit: 1.0100 – 0.9950.
Main Scenario
Consider long positions from corrections above the level of 1.0280 with a target of 1.0635 – 1.0940.
Alternative Scenario
Breakout and consolidation below the level of 1.0280 will allow the pair to continue declining to the levels of 1.0100 – 0.9950.
Analysis
The ascending first wave of the larger degree (1) has formed on the daily chart, and the bearish correction appears to have completed as the second wave (2). Apparently, wave С of (2) has finished developing, and the third wave of larger degree (3) started forming on the H4 chart. On the H1 time frame, the first counter-trend wave of smaller degree (i) of i of 1 of (3) is likely formed, the local correction is complete in the form of the second wave (ii) of i of 1 of (3), and the third wave (iii) of i of 1 of (3) is developing. If the presumption is correct, the EUR/USD pair will continue to rise to 1.0635 – 1.0940. The level of 1.0280 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0100 – 0.9950.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
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 broker. 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 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
