The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.0536 with a target of 1.0193 – 1.0000. A sell signal: the price holds below 1.0536. Stop Loss: above 1.0565, Take Profit: 1.0193 – 1.0000.
- Alternative scenario: Breakout and consolidation above the level of 1.0536 will allow the pair to continue rising to the levels of 1.0790 – 1.0940. A buy signal: the level of 1.0536 is broken to the upside. Stop Loss: below 1.0510, Take Profit: 1.0790 – 1.0940.
Main Scenario
Consider short positions from corrections below the level of 1.0536 with a target of 1.0193 – 1.0000.
Alternative Scenario
Breakout and consolidation above the level of 1.0536 will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
Analysis
An ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave (2). Apparently, wave В of (2) has formed and wave С of (2) continues developing on the H4 time frame. On the H1 time frame, a local correction is completed as wave iv of C. Wave v of C is forming now, with wave (iii) of v unfolding as its part. If the presumption is correct, EURUSD will continue to drop to the levels of 1.0193 – 1.0000. The level of 1.0536 is critical in this scenario. Its breakout will allow the pair to continue rising to the levels of 1.0790 – 1.0940.
Price chart of EURUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
