The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 1.0280 with a target of 1.0635 – 1.0940. A buy signal: the level of 1.0280 is broken to the upside. Stop Loss: below 1.0250, Take Profit: 1.0635 – 1.0940.
- Alternative scenario: breakout and consolidation below 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 1.0330, 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 first ascending wave of larger degree (1) is formed on the daily chart, and the bearish correction appears to have completed as the second wave (2). Wave С of (2) is likely formed on the H4 time frame, and the third wave of larger degree (3) has started unfolding, with the first counter-trend wave of smaller degree i of 1 of (3) forming as its part. Wave (iii) of i of 1 of (3) appears to be unfolding on the H1 time frame, within which wave v of (iii) has started forming. If the presumption is correct, the EUR/USD pair will continue to rise to the levels of 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
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