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EUR/USD analysis for May 27, 2013

Posted at May 27, 2013 Categories : Forex Analysis |

EUR/USD Elliott Wave
Since our last analyses the EUR/USD pair has been trading downwards, just like we expected, impulsive sub-wave 3 (coloured blue) of the final wave (5) (coloured green) has started its development. During the Friday’s Asian and European sessions we could observe ascending movement from 1.2903 towards the 1.2992 level and we can consider this move as the end of the corrective wave 2 (coloured blue). Therefore, during the New York session when development of the impulsive wave 3 had started this major pair did not manage to hold this levels and the price has dropped to the new session’s low at 1.2911 level. At the moment the EUR/USD pair is trading around 1.2945 and we expect to see the price lower this week. In accordance to our wave rules and taking into account that wave 5 should retrace minimum 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.2716 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.2997 level as stop loss.
Support and Resistance
(S3) 1.2805 (S2) 1.2855 (S1) 1.2894 (PP) 1.2944 (R1) 1.2983 (R2) 1.3033 (R3) 1.3072
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short  positions at level 1.930  with stop loss at 1.2997 and take profit at 1.2716 are recommended. 

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