The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.1450 with a target of 1.2050 – 1.2400. A buy signal: the price holds above 1.1450. Stop Loss: below 1.1400, Take Profit: 1.2050 – 1.2400.
- Alternative scenario: Breakout and consolidation below the level of 1.1450 will allow the pair to continue declining to the levels of 1.1210 – 1.1060. A sell signal: the level of 1.1450 is broken to the downside. Stop Loss: above 1.1500, Take Profit: 1.1210 – 1.1060.
Main Scenario
Consider long positions above the level of 1.1450 with a target of 1.2050 – 1.2400 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.1450 will allow the pair to continue declining to the levels of 1.1210 – 1.1060.
Analysis
On the daily timeframe, a downward correction has completed as the second wave (2), and the third wave (3) is now unfolding. Apparently, the first counter-trend wave of smaller degree 1 of (3) is forming on the H4 timeframe, with wave v of 1 developing as its part. On the H1 timeframe, wave (iii) of v has likely completed, and a local correction is nearing completion as wave (iv) of v. Within this correction, wave c of (iv) is currently developing. If the presumption is correct, the EUR/USD pair will continue to rise to the levels of 1.2050 – 1.2400 after the correction ends. The level of 1.1450 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.1210 – 1.1060.
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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