Main scenario: consider short positions from corrections below the level of 1.2254 with a target of 1.1600 – 1.1489.
Alternative scenario: breakout and consolidation above the level of 1.2254 will allow the pair to continue rising to the levels of 1.2500 – 1.2600.
Analysis: Daily time frame: presumably, the first wave of larger degree 1 of (3) was formed, and a downside correction is forming as wave 2 of (3). Apparently, wave a of 2 and an ascending wave b of 2 formed on the H4 time frame. A descending wave c of 2 started to develop on the H1 time frame, with the first wave of smaller degree (i) of c developing inside. If the presumption is correct, the pair will continue to drop to the levels of 1.1600 – 1.1489. The level of 1.2254 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.2500 – 1.2600.
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 LiteForex. 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 2004/39/EC.