The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.1496 with a target of 1.1120–1.0895. A sell signal: the price holds below 1.1496. Stop Loss: above 1.1540, Take Profit: 1.1120–1.0895.
- Alternative scenario: Breakout and consolidation above the level of 1.1496 will allow the pair to continue rising to the levels of 1.1790–1.2088. A buy signal: the level of 1.1496 is broken to the upside. Stop Loss: below 1.1450, Take Profit: 1.1790–1.2088.
Main Scenario
Consider short positions from corrections below the level of 1.1496 with a target of 1.1120–1.0895.
Alternative Scenario
Breakout and consolidation above 1.1496 will allow the pair to continue rising to the levels of 1.1790–1.2088.
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. Wave (c) of ii is developing on the H4 time frame, with the third wave of smaller degree iii of (c) developing inside. If the presumption is correct, EUR/USD will continue to decline to the levels of 1.1120–1.0895. The level of 1.1496 is critical in this scenario. A breakout above it will allow the pair to continue rising to the levels of 1.1790–1.2088.
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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