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EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in a downward move, corrective C wave (coloured blue) of the bigger (2) wave (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe ascending movement toward the 1.3295 level and we can consider this move as the end of the B wave (coloured blue). Therefore, during the New York session this major pair did not manage to hold this level and the price dropped to the new 2 days low at the level of 1.3179. At the moment the EUR/USD pair is trading around 1.9177 and we are expecting to see the price higher today when development of the (3) wave (coloured green) 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 1.3582 (100% of wave 1). To reduce the risk, we can use support at 1.3050 level as stop loss.
Support and Resistance
(S3) 1.3084 (S2) 1.3136 (S1) 1.3190 (PP) 1.3242 (R1) 1.3296 (R2) 1.3348 (R3) 1.3402
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.3138 with stop loss 1.3050 and take profit at 1.3582 are recommended.
