EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair has been trading upwards, just like we expected, corrective sub-wave 2 (coloured blue) of the bigger wave (3) (coloured green) has been developing. During the Monday's Asian and European sessions we could observe descending movement from 1.2295 towards 1.2942 level and we can consider this move as the end of corrective wave B (coloured red). Therefore, during the early New York session when development of final wave C (coloured red) started, this major pair did not manage to hold low levels and the price has jumped to the new daily high at 1.2999 level. At the moment the EUR/USD pair is trading around 1.2985 level and we expect to see the price higher for the end of the wave C (coloured red). 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 1.2942 level as stop loss.
Alternation: If price breaks invalidation level at 1.2942 we must count wave 2 (coloured blue) as complete and in this case the next support can be 1.2000 level.
Support and Resistance
(S3) 1.2887 (S2) 1.2914 (S1) 1.2945 (PP) 1.2972 (R1) 1.3003 (R2) 1.3030 (R3) 1.3061
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.2990 with stop loss at 1.2942 and take profit at 1.3094 are recommended.
