The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.1350 with a target of 1.1750 – 1.2050. A buy signal: the price stops declining and bounces upward from the level of 1.1350. Stop Loss: below 1.1275, Take Profit: 1.1750 – 1.2050.
- Alternative scenario: Breakout and consolidation below the level of 1.1350 will allow the pair to continue declining to the levels of 1.1060 – 1.0900. A sell signal: the level of 1.1350 is broken to the downside. Stop Loss: above 1.1420, Take Profit: 1.1060 – 1.0900.
Main Scenario
Consider long positions from corrections above the level of 1.1350 with a target of 1.1750 – 1.2050.
Alternative Scenario
Breakout and consolidation below the level of 1.1350 will allow the pair to continue declining to the levels of 1.1060 – 1.0900.
Analysis
The daily time frame shows that the ascending first wave of larger degree (1) is formed, the descending correction has developed as the second wave (2), and the third wave (3) has started unfolding. Apparently, the first counter-trend wave of smaller degree 1 of (3) is forming on the H4 time frame, with wave v of 1 developing inside. Wave (iii) of v continues developing on the H1 chart. If this assumption is correct, the EUR/USD pair will continue to grow to the levels of 1.1750 – 1.2050. The level of 1.1350 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.1060 – 1.0900.
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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