EUR/USD Elliott Wave
Yesterday the EUR/USD pair was trading sideways. During the European session we could observe downward movement towards the 1.2680 level where this pair find support and started pushing higher. Therefore during the early New York session we could observe price around 1.2760 level. At the second half of New York session the EUR/USD start pushing lower again and this major closed Wednesday at the 1.2700 level. Today during the Asian session we could observe bullish mood and price reaching 50 EMA resistance. We have German, French and Swiss bank holiday today so I do not expect high volatility before New York start. Presently we can observe end of the 5 wave (coloured pink) of the bigger 3 wave (coloured blue) so we should be prepared for entering with long position for catching corrective 4 wave (coloured blue).In accordance with our wave rules and taking into account that the wave 4 retraces 100% of the wave 2, we can define the potential targets with measuring the 2 wave. Take Profit at 1.2918 (100% of wave 2). The resistance point at the 1.2600 level can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S. Unemployment Claims, Philly Fed Manufacturing Index and Treasury Sec Geithner Speech, that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.2641 (S2) 1.2670 (S1) 1.2689 (PP) 1.2718 (R1) 1.2747 (R2) 1.2766 (R3) 1.2795

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.2660 with Stop Loss at 1.2600 and Take Profit at 1.2918 are recommended.