EUR/USD Elliott Wave
For the last few days the EUR/USD pair was trading sideways, impulsive 5 wave (coloured red) of the bigger 3 wave (coloured purple) has started developing. Yesterday during the European session we could observe descending movement from 1.3571 towards the 1.3493 level and we can consider this move as the corrective wave 2 of the bigger (5) wave (coloured red). Today, during the early Asian session this major pair started pushing higher reaching a new 2-day high at 1.3560 level and we are expecting to see the price above 1.4100 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.4104 (100% of wave 1). To reduce the risk, we can use invalidation at 1.3457 level as stop loss.
Support and Resistance
(S3) 1.3435 (S2) 1.3474 (S1) 1.3498 (PP) 1.3537 (R1) 1.3576 (R2) 1.3600 (R3) 1.3639
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why long positions at level 1.3570 with stop loss 1.3457 and take profit at 1.4104 are recommended.