EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in a downward movement, corrective wave (2) (coloured green) of the bigger (1) wave (coloured red) was developing. During the Friday’s Asian and European sessions we could observe strong descending movement from 1.2783 towards the 1.2723 level. Therefore, during the early New York session this major pair continued trading in a bearish mood and the price reached a new 3 days low at 1.2690 level. We can consider this move as the end of the wave (2) (coloured green). At the moment the EUR/USD pair is trading around 1.2760 level and we are expecting to see the price around 1.2900 level when development of the (3) wave (coloured green) starts. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.2907 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.2690 level as stop loss.

Support and Resistance
(S3) 1.2644 (S2) 1.2680 (S1) 1.2702 (PP) 1.2738 (R1) 1.2774 (R2) 1.2796 (R3) 1.2832

Trading Forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2740 with stop loss 1.2690 and take profit at 1.2907 are recommended.