EUR/USD Elliott Wave 
For the last few days the EUR/USD pair was trading in a strong upward move, impulsive 3 wave (coloured blue) of the bigger (3) wave (coloured green) was developing. Yesterday during the European session we could observe descending movement from 1.8977 towards the 1.2855 level. Therefore, during the New York session the EUR/USD pair did not manage to hold this level and the price retraced back to the level 1.2897. At the moment this major currency pair is trading around 2.8840 level and we are expecting to see the price lower today when 4 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.2858 (38.2% of wave 3). To reduce the risk, we can use resistance at 1.2960 level as stop loss.

Support and Resistance
(S3) 1.2796 (S2) 1.2824 (S1) 1.2841 (PP) 1.2869 (R1) 1.2897 (R2) 1.2914 (R3) 1.2942

Trading Forecast 

Proceeding from Elliott Wave rules today, the price is expected to begin the downward movement. That is why short positions at level 1.2938 with stop loss 1.2960 and take profit at 1.2858 are recommended.