The article covers the following subjects:
Major Takeaways
Main scenario: Consider long positions from corrections 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 1.1380, 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 1.1520, Take Profit: 1.1210 – 1.1060.
Main Scenario
Consider long positions from corrections above the level of 1.1450 with a target of 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.
Analysis
The daily time frame shows that an ascending first wave of larger degree (1) is formed, a descending correction has developed as second wave (2), and the third wave (3) is in progress. 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. On the H1 time frame, wave (iii) of v continues to develop, with a local correction completed as wave iv of (iii). Wave v of (iii) is now unfolding. If the presumption is correct, the EUR/USD pair will continue to rise to 1.2050 – 1.2400. 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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