EUR/USD Elliott Wave
Last week the EUR/USD pair has been trading downwards, impulsive wave (1) (coloured green) of the bigger wave Y (coloured red) has been developing. During the Friday's European session we could observe descending movement from 1.3147 towards the 1.3033 level and we can consider this move as the end of the final wave 5 (coloured blue) of the bigger (1) wave (coloured green). Therefore, during the early New York session when development of the corrective wave 2 started, this major pair has pushed higher and we could observe the price reaching a new daily high at 1.3157 level (end of the blue wave A). At the moment the EUR/USD pair is trading around 1.3100 level and we expect to see the price higher in the next few sessions. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3160 (61.8 % of wave 1). To reduce the risk, we can use support at 1.3050 as stop loss.
Support and Resistance
(S3) 1.2920 (S2) 1.2976 (S1) 1.3047 (PP) 1.3103 (R1) 1.3174 (R2) 1.3230 (R3) 1.3301
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.3110 with stop loss at 1.3050 and take profit at 1.3160 are recommended.