EUR/USD Elliott Wave
Since our last analyses the EUR/USD pair has been trading upwards, so we changed our primary wave count a little bit. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.3067 towards the 1.3131 level and because of this move we need to look the corrective wave (2) (coloured green) as double three. Therefore, during the early New York session this major currency did not manage to hold this level and the price has retraced back to 1.3070 area. At the moment the EUR/USD pair is trading around 1.3105 and we expect to see the price lower when development of the wave (3) (coloured green) starts. In accordance with our wave rules and taking into account that the wave 3 should retrace minimum 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.2920 (100% of wave 1). To reduce the risk, we can use invalidation at 1.3215 as stop loss.
Support and Resistance
(S3) 1.2989 (S2) 1.3028 (S1) 1.3053 (PP) 1.3092 (R1) 1.3117 (R2) 1.3156 (R3) 1.3181
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.3050 with stop loss at 1.3215 and take profit at 1.2920 are recommended.
