EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in an upward move, impulsive 1 wave (coloured blue) of the bigger (5) wave (coloured green) was developing. Yesterday, during the European session after this major pair found support at 1.3040 level we could observe ascending movement toward the 1.3099 level. Therefore, during the early New York session the EUR/USD pair did not manage to hold this level and the price started pushing lower reaching a new session low at 1.3058 level. Today this major pushed to the 1.3120 level where we think 1 impulsive wave end and we are expecting to see the price trading around 1.3000 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 50% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.2998 (50% of wave 1). To reduce the risk, we can use resistance at 1.3126 level as stop loss.
Support and Resistance
(S3) 1.2984 (S2) 1.3012 (S1) 1.3044 (PP) 1.3072 (R1) 1.3104 (R2) 1.3132 (R3) 1.3164
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.3070 with stop loss 1.3126 and take profit at 1.2998 are recommended.