The Elliott Wave analysis is powerful when combined with a proper end of cycle validation technique, in this report, you will find our updated wave count with precise trading ideas. On the four-hour chart, we are looking to see the end of the wave “2” red. The price retraces close to the Fibonacci support 38.2%(1.1799) of wave one, most of the times the wave two is likely to retrace 50% or more, but in this case, seems that the second wave ended and is time to start looking for a bullish trade.
The cycle up that happen today during the NY session is the first piece of the reversal. This is the wave “1” orange, and it ended after hitting the resistance 1.1875. The wave “2” orange is active, inside we can appreciate a zigzag “ABC” green (check the 5-minute chart), using harmonic rules is possible to estimate the precise level where the wave “2” orange will end, that is the 78.6% (1.1820).The price is testing this level right now, and the first entry will be once we have a candlestick reversal pattern.
A second entry buy stop order for conservative traders will be at the end of wave “B” green 1.1849 and the last level to trigger the trade will be at 1.1875 the end of wave one. Pick your favorite and start making money with on the EURO. Target for the bullish trade is at 1.2090
If the price fails to reach these levels and continues its path down breaking the support 1.1805, the wave two red will be active again, and the plan will be to wait for another reversal attempt. Happy weekend and see you soon.