EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair has been trading downwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger wave (5) (coloured green) has been developing. During the Thursday's Asian and European sessions we could observe ascending movement from 1.2884 towards the 1.2949 level. Therefore, during the New York session this major currency did not manage to hold this levels and the price has dropped to the new 3 days low at 1.2848 level.At the moment the EUR/USD pair is trading around 1.2889 and we are expecting to see 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) 1.2720 (S2) 1.2784 (S1) 1.2820 (PP) 1.2884 (R1) 1.2920 (R2) 1.2984 (R3) 1.3020
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.2880 with stop loss at 1.2997 and take profit at 1.2716 are recommended.
