EUR/USD Elliott wave
Since our last analysis the EUR/USD pair has been trading lower, so we changed our primary wave count a little bit. During the Thursday's European session we could observe ascending movement from 1.3145 towards the 1.3217 level. Therefore, during the early New York session this major currency did not manage to hold this levels and the price dropped to the new 3-day low at 1.3037 level. We can consider this move as the end of the wave 3 (coloured blue) of the bigger wave (1) (coloured green). At the moment, the EUR/USD pair is trading around 1.3122 level and we are expecting to see price around 1.3010 area in the next few sessions. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.3013 (61.8 % of wave 3). To reduce the risk, we can use resistance at 1.3200 level as stop loss.
Support and resistance
(S3) 1.2813 (S2) 1.2925 (S1) 1.2994 (PP) 1.3106 (R1) 1.3175 (R2) 1.3287 (R3) 1.3356
Trading forecast
Proceeding from Elliott wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.3100 with stop loss at 1.3200 and take profit at 1.3013 are recommended.
