The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.1770 with a target of 1.1252 – 1.1040. A sell signal: the price holds below 1.1770. Stop Loss: above 1.1770, Take Profit: 1.1252 – 1.1040.
- Alternative scenario: Breakout and consolidation above the level of 1.1770 will allow the pair to continue rising to the levels of 1.1915 – 1.2100. A buy signal: the level of 1.1770 is broken to the upside. Stop Loss: below 1.1770, Take Profit: 1.1915 – 1.2100.
Main Scenario
Consider short positions from corrections below the level of 1.1770 with a target of 1.1252 – 1.1040.
Alternative Scenario
Breakout and consolidation above the level of 1.1770 will allow the pair to continue rising to the levels of 1.1915 – 1.2100.
Analysis
On the weekly time frame, an ascending wave of larger degree B is developing, with wave (A) of B forming as its part. On the daily time frame, the third wave 3 of (A) has apparently been completed, and a downward correction is developing as the fourth wave 4 of (A). Wave a of 4 is forming on the H4 time frame, within which a local correction is nearing completion as wave (ii) of a. If the presumption is correct, the EUR/USD pair will continue falling to 1.1252 – 1.1040 after the correction is over. The level of 1.1770 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.1915 – 1.2100.
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.
