EUR/USD Elliott Wave
Since our last analysis the EUR/USD pair was trading in an upward move as we expected, developing impulsive (3) (coloured green). During the Friday's European session we could observe an ascending movement towards the 1.2290 level (daily high). Therefore, during the New York session the EUR/USD pair continued trading in a bullish mood and price hit a new 4-week high around 1.2390 level. Today during the early Asian session this major pair found resistance at 1.2442 and the price is currently trading around 1.2350 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.2041-1.2390-1.2132) with Take Profit 1 at 1.2480 (100% of wave 1) and Take Profit 2 at 1.2695 (161.8% of wave 1). To reduce the risk, we can use support point at 1.2350 as Stop Loss. Also it is necessary to monitor the EU Sentix Investor Confidence and U.S. Fed Chairman Bernanke Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.2088 (S2) 1.2175 (S1) 1.2228 (PP) 1.2314 (R1) 1.2401 (R2) 1.2454 (R3) 1.2540
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is likely to begin the upward movement. For this reason long positions at level 1.2400 with Stop Loss 1.2350 Take Profit 1 1.2480 and Take Profit 2 at 1.2695 are recommended.