EUR/USD Elliott Wave
Since our last analyses the EUR/USD pair has been trading sideways, impulsive wave 3 (coloured blue) of the bigger wave (5) (coloured green) has been developing. Yesterday, during the European and New York sessions we could observe sideways movement between 1.2947 and 1.2919 area. Therefore, during the early Asian session today this major currency has not managed to hold this level and the price has dropped to 1.2884 level. At the moment the EUR/USD pair is trading around 1.2920 and we expect to see the price lower in the next few sessions. 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 1.2997 level as stop loss.
Support and Resistance
(S3) 1.2880 (S2) 1.2898 (S1) 1.2913 (PP) 1.2931 (R1) 1.2946 (R2) 1.2964 (R3) 1.2979
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.2920 with stop loss at 1.2997 and take profit at 1.2716 are recommended.
