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EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in a downward movement, corrective 4 wave (coloured pink) of the bigger 5 wave (coloured blue) was developing. During the Asian and European sessions we could observe descending movement toward the 1.3140 level and we can consider this move as the end of the 4 wave. Therefore, during the New York session when development of the final 5 wave (coloured pink) started the EUR/USD pair pushed higher and reached 1.3190 level. At the moment this major pair is trading around 1.3180 level and we are expecting to see the price higher for the end of the 5 wave. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3243 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.3141 level as stop.
Support and Resistance
(S3) 1.3121 (S2) 1.3138 (S1) 1.3148 (PP) 1.3166 (R1) 1.3183 (R2) 1.3193 (R3) 1.3211
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.3180 with stop loss 1.3141 and take profit at 1.3243 are recommended.
