The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction has been completed, consider short positions below the level of 1.1320 with a target of 1.1040–1.0895. A sell signal: the local correction ends and the price holds below 1.1320. Stop Loss: above 1.1365, Take Profit: 1.1040–1.0895.
- Alternative scenario: Breakout and consolidation above the level of 1.1320 will allow the pair to continue rising to the levels of 1.1446–1.1650. A buy signal: the level of 1.1320 is broken to the upside. Stop Loss: below 1.1275, Take Profit: 1.1446–1.1650.
Main Scenario
Consider short positions below 1.1320 with a target of 1.1040–1.0895 once the correction is completed.
Alternative Scenario
Breakout and consolidation above 1.1320 will allow the pair to continue rising to the levels of 1.1446–1.1650.
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) is apparently unfolding. Within it, wave i of 3 has formed and a downward corrective wave ii of 3 is unfolding. On the H4 time frame, wave (c) of ii is developing. Within it, the third wave of smaller degree iii of (c) has formed, and a local correction iv of (c) is unfolding. If the presumption is correct, EUR/USD will resume declining to 1.1040–1.0895 once the correction is completed. The level of 1.1320 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.1446–1.1650.
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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