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EUR/USD Elliott Wave
The EUR/USD pair has been trading in a sideways move since Monday; corrective wave 2 (coloured blue) of the bigger wave (3) (coloured green) was developing. Yesterday during the Asian and European sessions we could observe ascending movement from 1.2765 towards the 1.2822 level. Therefore, during the New York session this major pair pushed higher and reached a new high at 1.2829 level and we can consider this move as the end of the flat (B) wave (coloured pink). Today during the Asian session the EUR/USD pair pushed lower for the final (C) wave (coloured pink) and we are expecting to see price above 1.2900 level soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.2928 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.2690 level as stop loss.
Support and Resistance
(S3) 1.2713 (S2) 1.2738 (S1) 1.2778 (PP) 1.2803 (R1) 1.2843 (R2) 1.2868 (R3) 1.2908
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why Long positions at level 1.2800 with stop loss 1.2690 and take profit at 1.2928 are recommended.
