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EUR/USD Elliott Wave
Last week the EUR/USD pair was trading in an upward move developing corrective (C) wave (coloured green) of the bigger wave (4) wave (coloured orange). During the early Friday's European session we could observe a descending movement from 1.2563 towards the 1.2480 level. Therefore, during the New York session this major pair did not manage to hold this level and the price retraced back to the 1.2560 level. At the moment the EUR/USD pair is developing an impulsive (5) wave (coloured orange) and we are expecting to see the price around 1.2000 level this week. In accordance with our wave rules and taking into account that the wave 5 retraces 161.8% of the wave 1, we can define the potential targets with measuring 1 wave, Take Profit 1 at 1.1933 (138.2% of wave 1) and Take Profit 2 at 1.1820 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.2590 level as Stop Loss. Also it is necessary to monitor the EU German Ifo Business Climate and U.S.FOMC Member Pianalto Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.2433 (S2) 1.2466 (S1) 1.2487 (PP) 1.2520 (R1) 1.2553 (R2) 1.2574 (R3) 1.2607
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.2480 with Stop Loss 1.2590, Take Profit 1 1.1933 and Take Profit 2 1.1820 are recommended.
