On the previous post, I suggested a bullish trade on the EUR/USD, and the trade worked nicely giving more than 100 pips. Today is the last day of trading in September, after a great month, we must get ready to achieve same or better results in October. The Elliott wave theory helps to find possible future cycle and the strategy provides the precise level to trigger a trade.
Elliott Wave Analysis
On the four chart, the EUR/USD is setting up one of my favorite trade setups. The wave “iv” black went deeper, getting to the 38.2% Fibonacci retracement of the previous wave “iii,” during the last hours the price action completed a five-wave sequence (impulse or motive wave) represented with green waves. This wave is noted as “(1)” orange, the price is likely to retrace up to 61.8% (1.1760) of wave one for the wave “(2)”.
The trading plan is simple. If only if the price does not move below the Elliott Wave invalidation level (1.1717), and if the price retrace at least 38.2% (1.1786). Then a buy order should be placed at 1.1830 to validate the end of the wave “(2)”, or if the price can draw a nice zigzag with appropriate symmetry, the trigger could be updated lower. The target for the bullish trade is located at the previous high 1.2090.
Four Hour Chart with Elliott Wave Analysis EUR/USD
Make sure to combine this analysis with your knowledge and always manage your risk. Have a nice weekend and don´t forget to share this post.