The EUR/USD is trading at 1.1100 at this time, last week when China announced the new tariffs, the EURO jumped from 1.1052 to 1.1164 in a matter of hours. A cycle that can be the beginning of a new movement to reach 1.1250. In this article, I will explain the price action from the Elliott Wave perspective and share my trading plan for this week.
The Fibonacci that stoped the fall
In the previous article “Elliott Wave Keys for the EUR/USD this week” appeared the Fibonacci 88.6% (1.1052) retrace as a possible hero who could contain the EURO and make it bounce, last Friday the price hit it and just bounced up there. When I see these types of events, I confirm that we are not alone, Fibonacci levels are levels that we should not ignore, instead observe and validate their importance with other techniques.
Method to accelerate the learning curve
I have been training traders around the world for more than ten years, if you ask me what is the key of teaching to a person to trade successfully, without a doubt the answer is to show you live trades, before they happen, when the student is taught with this method he takes off very fast. Today I want to share one of my favorite trades for this week.
Elliott Wave EUR / USD Chart – 4 Hours
Elliott Wave News
Let us talk about the EUR / USD today, the explosive bullish move in the EURO that happened last Friday. With big candles that moved the price higher but failed to stabilize at the top of the cycle, so then the price reacted on Monday to the downside, and today we see it near the 50% retracement (1,1008). In terms of Elliott Wave, the previous movement is called wave (A) (orange) now we are in front of wave (B) (Orange). I estimate that the target for its end will be 78.6% (1.1075).
Inside the wave (B) (Orange) a ZigZag “ABC” (Green) appears, the wave “C” (Green) is in progress and the price is expected to fall to 1.1075. If the price bounces after impacting this support, we will be facing an excellent opportunity to enter the market long and aim the 1.1250. On the other hand, if the price does not bounce and continues to fall, impacting the previous low 1.1052, we can see a different scenario and a new low below 1.1026 can be expected.
Thank you for taking the time to read this report that has the purpose of helping you in your trading and sharing my point of view. Please share this article with your trading friends. I wish you a week full of success, learning, and the best in your trading.