The EURO rises steadily during the last three weeks. The fundamentals related to Brexit are helping it to climb. In this article, we share our updated Elliott Wave count for the EUR/USD. Analyzing price action from the big picture is a task that opens the mind of the analyst, and helps to understand the position of the price against the past price action.
The Weekly Chart Analysis
In the weekly chart, a bearish cycle of five waves is happening. The black waves “i, ii, iii, iv, v” are building an ending diagonal. This cycle is the last downward move to complete the wave “i” blue.
The current wave “iv” in black is nearing completion, and the validation strategy is described later in this article. When the fourth wave marks its end, a short trade will happen, the target is at support 1.0872.
Weekly Chart EUR/USD
Strategy to take the Trade
On the four-hour chart, the price is clearly bullish. The green “4” wave is over, and the price is ready to continue climbing. Here is possible to take a long trade buying at the current price wit a target at the previous high 1.1180. The expected upward movement is for the green wave “5”.
Once the price exceeds the previous high 1.1180, it can impact the area between 1.1200 to 1.1250. When it returns to 1.1180, we will be ready to sell the EURO. With a Sell Stop in the area of 1.1175, using a tiny stop loss and good profit potential.
Four-Hour Chart EUR/USD
Trade administration plays the most critical role in the entire trading strategy. Always risk little and look for a risk-benefit ratio of 1 to 2 or higher. Please have a week of positive experiences and new learning in your trading.
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