EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair has been trading downwards, extended sub-wave 5 (coloured red) of the bigger wave 1 (coloured blue) has finished its development. During the Friday's European session we could observe descending movement from 1.3049 towards the 1.2989 level. Therefore, during the early New York session this major currency pair has continued trading lower and the price has reached a new low at 1.2936 level. We can consider this movement as the end of the wave 1 (coloured blue) of the bigger wave (3) (coloured green). At the moment the EUR/USD pair is trading around 1.2970 level and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3094 (61.8% of wave 1). To reduce the risk, we can use support point at 1.2935 level as stop loss.
Support and Resistance
(S3) 1.2876 (S2) 1.2920 (S1) 1.2947 (PP) 1.2991 (R1) 1.3035 (R2) 1.3062 (R3) 1.3106
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.2980 with stop loss at 1.2935 and take profit at 1.3094 are recommended.
