The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.1056 with a target of 1.1750 – 1.2050. A buy signal: the price holds above 1.1056. Stop Loss: below 1.1000, Take Profit: 1.1750 – 1.2050.
- Alternative scenario: Breakout and consolidation below the level of 1.1056 will allow the pair to continue declining to the levels of 1.0720 – 1.0375. A sell signal: the level of 1.1056 is broken to the downside. Stop Loss: above 1.1120, Take Profit: 1.0720 – 1.0375.
Main Scenario
Consider long positions above the level of 1.1056 with a target of 1.1750 – 1.2050 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.1056 will allow the pair to continue declining to the levels of 1.0720 – 1.0375.
Analysis
The ascending first wave of the larger degree (1) has formed on the daily chart, and the bearish correction is completed as the second wave (2). On the H4 time frame, the third wave of larger degree (3) has started unfolding, with the first counter-trend wave of smaller degree 1 of (3) forming as its part. Wave iii of 1 is formed on the H1 chart, and a local correction continues developing as wave iv of 1. If the presumption is correct, the EUR/USD pair will continue to rise to the levels of 1.1750 – 1.2050 after the correction ends. The level of 1.1056 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0720 – 1.0375.
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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