The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.1208 with a target of 1.1750 – 1.2050. A buy signal: the price holds above 1.1208. Stop Loss: below 1.1150, Take Profit: 1.1750 – 1.2050.
- Alternative scenario: Breakout and consolidation below the level of 1.1208 will allow the pair to continue declining to the levels of 1.1060 – 1.0900. A sell signal: the level of 1.1208 is broken to the downside. Stop Loss: above 1.1208, Take Profit: 1.1060 – 1.0900.
Main scenario
Consider long positions from corrections above the level of 1.1208 with a target of 1.1750 – 1.2050.
Alternative scenario
Breakout and consolidation below the level of 1.1208 will allow the pair to continue sliding to the levels of 1.1060 – 1.0900.
Analysis
On the daily chart, the first ascending wave of larger degree (1) is formed. The bearish correction is completed as the second wave (2), and the wave (3) is currently developing. On the H4 time frame, the first counter-trend wave of smaller degree 1 of (3) is forming, with wave v of 1 unfolding as its part. On the H1 chart, a local correction (ii) of v has ended, and wave (iii) of v has begun to unfold. If the presumption is correct, EUR/USD will continue to increase to the levels of 1.1750 – 1.2050. The level of 1.1208 is critical in this scenario. Its breakout will allow the pair to continue declining 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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