The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above 1.1700 with a target of 1.2400–1.2750. A buy signal: the price holds above 1.1700. Stop Loss: below 1.1700, Take Profit: 1.2400–1.2750.
- Alternative scenario: Breakout and consolidation below the level of 1.1700 will allow the pair to continue declining to the levels of 1.1460–1.1254. A sell signal: the level of 1.1700 is broken to the downside. Stop Loss: above 1.1700, Take Profit: 1.1460–1.1254.
Main Scenario
Consider long positions above the level of 1.1700 with a target of 1.2400–1.2750 once the correction ends.
Alternative Scenario
Breakout and consolidation below 1.1700 will allow the pair to continue declining to the levels of 1.1460–1.1254.
Analysis
On the weekly time frame, an ascending wave of larger degree B is developing, with wave (A) of B forming as its part. On the daily time frame, the third wave 3 of (A) is apparently unfolding. Within it, wave i of 3 has formed and a corrective wave ii of 3 has been completed. The H4 time frame shows that wave iii of 3 has presumably started developing, with a local correction forming as wave (ii) of iii within. If the presumption is correct, EUR/USD will continue to rise to the levels of 1.2400–1.2750 after the correction ends. The level of 1.1700 is critical in this scenario. A breakout below it will allow the pair to continue falling to the levels of 1.1460–1.1254.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of EURUSD in real time mode
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