EUR/USD Elliott Wave
For the last few days the EUR/USD pair has been trading upwards, corrective wave (4) (coloured green) of the bigger wave 1 (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.2900 towards the 1.2840 level and we can consider this move as the end of the sub-wave B (coloured blue) of the wave (4) (coloured green). Therefore, during the New York session this major currency did not manage to hold this levels and the price has reached a new high at 1.2933 level. At the moment the EUR/USD pair is trading around 1.2950 and we expect to see the price lower when development of the wave (4) ends. In accordance with our wave rules and taking into account that wave 5 should retrace minimum 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.2716 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.3034 level as stop loss.
Support and Resistance
(S3) 1.2759 (S2) 1.2800 (S1) 1.2852 (PP) 1.2893 (R1) 1.2945 (R2) 1.2986 (R3) 1.3038
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.2900 with stop loss at 1.3034 and take profit at 1.2716 are recommended.
