The price action for the EUR/USD pair has followed an upward path, as we had forecasted through our analysis, and is currently trading at 1.3792. Understanding the market cycles and the price action within those cycles is necessary before making any trading decisions. Each pair has its own way of reacting to different situations, and during last two weeks the pair proved to be stable and easy to interpret structure-wise. I am sure that the majority of followers of Elliott Wave theory have found several opportunities in the EUR/USD. Our analysis aims to show the route on the map to follow and identify when we are on the wrong path. Use the information according to your Trade plan to generate entries to reach the final destination with realistic price targets.
Our main Elliott Wave count indicates that we have entered the corrective phase for the black “ii” wave, where the objective for the bullish movement comes from the Fibonacci relationship 2 vs 1. Thanks to this method we have several objectives such as 50% (1.3836), and 61.8% (1.3867), among others. Please note that before reaching the proposed price objective, price action must play out 3 corrective waves, due to the chaotic nature of the market, and is labelled in red waves “A, B, C” where the “A” wave ended during the last trading session after trading to 1.3815. Structure seems to indicate that price action has entered the corrective phase for the “B” wave. The objective for the downward movement is set at 1.3747. The point of invalidation of the count is 1.3715.
Choosing to buy the pair at this time would not be appropriate, although it should be noted that the price can create a new high. However, the movement shows fatigue and it is better to wait for the pullback to buy at a better price. The idea is that through the Trading plan achieved during the retracement for wave “B” at the best possible price, the market will offer a low risk/high reward entry price. Exercising patience will help to create the habit of waiting for price to come to you so you don’t have to chase price. To your trading success!