EUR/USD Elliott Wave
From May of 2011 the EUR/USD pair was trading in bearish mood, yesterday this major pair pushed lower again reaching new low at the 1.2657 level. During the European session we could observe descending move towards the 1.2740 level (100EMA support). Therefore during the New York session the EUR/USD pair continued trading in a bearish mood and we could observe price below the 1.2660 level. Today during the Asian session we could observe price at the 1.2615 level. We can consider this move as the end of 5 wave. Presently we are in the A wave (coloured blue) and I expect to see end of this corrective wave at 200EMA resistance. We can use 1.2770 as a Take Profit point and 1.2615 as Stop loss point. Also it is necessary to consider the data concerning the CAD Core Retail Sales m/m, Retail Sales m/m and the U.S. New Home Sales, Crude Oil Inventories that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.2679 (S2) 1.2682 (S1) 1.2683 (PP) 1.2685 (R1) 1.2688 (R2) 1.2689 (R3) 1.2691

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 1.2670 with Stop Loss at 1.2615 and Take Profit at 1.2770 are recommended.