EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading upwards, impulsive 5 (coloured blue) of the bigger wave (1) (coloured green) was developing. During the Friday's Asian and European sessions we could observe strong ascending movement from 1.3358 toward the 1.3450 level. Therefore, during the New York session this major pair continued trading in a bullish mood and the price reached a new daily high at 1.3478 level. We can consider this move as the end of the (5) impulsive wave (coloured pink) of the bigger 5 wave (coloured blue). Today the price has started pushing lower when development of the corrective (2) wave (coloured green) started. In accordance with our wave rules and taking into account that the wave 2 should retrace 50% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3237 (50% of wave 1). To reduce the risk, we can use invalidation at 1.3476 level as stop loss.
Support and Resistance
(S3) 1.3297 (S2) 1.3346 (S1) 1.3377 (PP) 1.3426 (R1) 1.3475 (R2) 1.3506 (R3) 1.3555
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.3440 with stop loss 1.3476 and take profit at 1.3237 are recommended.
