The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 1.1003 with a target of 1.0605 – 1.0400. A sell signal: if the price holds below 1.1003. Stop Loss: above 1.0050, Take Profit: 1.0605 – 1.0400.
- Alternative scenario: breakout and consolidation above the level of 1.1003 will allow the pair to continue rising to the levels of 1.1208 – 1.1400. A buy signal: once the level of 1.1003 is broken to the upside. Stop Loss: below 0.9950, Take Profit: 1.1208 – 1.1400.
Main scenario
Consider short positions from corrections below the level of 1.1003 with a target of 1.0605 – 1.0400.
Alternative scenario
Breakout and consolidation above the level of 1.1003 will allow the pair to continue rising to the levels of 1.1208 – 1.1400.
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) is developing on the H4 time frame. The first wave of smaller degree i of С is unfolding on the H1 time frame, with wave (v) of i developing as its part. If the presumption is correct, EURUSD will continue to drop to the levels of 1.0605 – 1.0400. The level of 1.1003 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.1208 – 1.1400.
Price chart of EURUSD in real time mode
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