_source!.png)
EUR/USD Elliott Wave
Last week the EUR/USD pair was trading in an upward move, corrective C wave (coloured blue) of the bigger (B) wave (coloured green) was developing. During the Friday’s Asian session we could observe descending movement from 1.3120 toward the 1.3066 level. Therefore, during the European and New York sessions this major pair did not manage to hold this level and the price started pushing higher reaching a new high at 1.3173 level. Today at the early Asian session the EUR/USD pair pushed higher toward the 1.3187 level where we think (B) wave ends and we are expecting to see the price lower soon when development of the 1 wave (coloured blue) starts. 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 1.3082 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.3188 level as stop loss.
Support and Resistance
(S3) 1.2987 (S2) 1.3026 (S1) 1.3094 (PP) 1.3133 (R1) 1.3201 (R2) 1.3240 (R3) 1.3308
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.3150 with stop loss 1.3188 and take profit at 1.3082 are recommended.
