EUR/USD Elliott Wave
For the last few days the EUR/USD pair was trading in an upward move developing corrective (Y) wave (coloured green) of the bigger (4) wave (coloured orange). During the Friday's European session we could observe an ascending movement from 1.2338 towards the 1.2380 level. Therefore, during the early New York session this major pair did not manage to hold this level and the price fell to the 1.2288 level (new daily low). At the moment the EUR/USD pair is trading around 1.2350 level and we are expecting to see the price around 1.2640 this week. In accordance with our wave rules and taking into account that the wave Y retraces 100% of the wave W, we can define the potential targets with measuring the X wave, with Take Profit at 1.2640 (100% of wave W). To reduce the risk, we can use support point at 1.2290 as Stop Loss.
Alternation: if price does not break 1.2385 resistance level soon, we need to regard (W) wave as the end of the (4) wave (coloured orange) and we can expect to see price around 1.2000 this week.
Support and Resistance
(S3) 1.2239 (S2) 1.2275 (S1) 1.2297 (PP) 1.2333 (R1) 1.2369 (R2) 1.2391 (R3) 1.2427
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2385 with Stop Loss 1.2290 and Take Profit 1.2640 are recommended.