The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.0763 with a target of 1.0990 – 1.1043. A buy signal: if the price holds above level 1.0763. Stop Loss: below 1.0730, Take Profit: 1.0990 – 1.1043.
- Alternative scenario: breakout and consolidation below the level of 1.0763 will allow the pair to continue declining to the levels of 1.0605 – 1.0400. A sell signal: once the level of 1.0763 is broken to the downside. Stop Loss: above 1.0790, Take Profit: 1.0605 – 1.0400.
Main scenario
Consider long positions from corrections above the level of 1.0763 with a target of 1.0990 – 1.1043.
Alternative scenario:
Breakout and consolidation below the level of 1.0763 will allow the pair to continue declining to the levels of 1.0605 – 1.0400.
Analysis
The ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave (2). Apparently, wave В of (2) has formed and wave С of (2) is developing on the H4 time frame. The first wave of smaller degree i of С is formed on the H1 time frame, and a local correction has started unfolding as wave ii of C. If the presumption is correct, EURUSD will continue rising to the levels of 1.0990 – 1.1043. The level of 1.0763 is critical in this scenario. Its breakout will allow the pair to continue falling to the levels of 1.0605 – 1.0400.
Price chart of EURUSD in real time mode
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