The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 1.1650 with a target of 1.2088–1.2400. A buy signal: the price holds above 1.1650. Stop Loss: below 1.1610, Take Profit: 1.2088–1.2400.
- Alternative scenario: Breakout and consolidation below 1.1650 will allow the asset to continue declining to the levels of 1.1400–1.1185. A sell signal: the level of 1.1650 is broken to the downside. Stop Loss: above 1.1690, Take Profit: 1.1400–1.1185.
Main Scenario
Consider long positions from corrections above 1.1650 with a target of 1.2088–1.2400.
Alternative Scenario
Breakout and consolidation below 1.1650 will allow the pair to continue declining to the levels of 1.1400–1.1185.
Analysis
On the weekly timeframe, an ascending wave of larger degree B is developing, with wave (A) of B forming as its part. On the daily timeframe, the third wave 3 of (A) is apparently unfolding. Within it, wave i of 3 has formed, corrective wave ii of 3 has been completed, and wave iii of 3 has started developing. On the H4 chart, the first wave of smaller degree (i) of iii continues to develop, within which wave iii of (i) has formed and a local correction iv of (i) has presumably been completed. If the presumption is correct, EUR/USD will continue to rise in wave v of (i) to the levels of 1.2088–1.2400. The level of 1.1650 is critical in this scenario. A breakout below it will allow the pair to continue to decline to the levels of 1.1400–1.1185.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
