The common currency today Tuesday extends its gains against the dollar continuingits rally started last April 25 maximum 1.1616 in mid European session, reaching level quoted for the last time on August 25 last year. Breaking important psychological1.1500 figure rising encouraged buyers to take long on this pair positions, and insurance many stops of short positions must have been executed to transpose such a barrier, combination of factors that injected much fuel to the bullish engine greatly increasing the speed with which moved the quote. Accordingly, when these "stretches" the price usually retract similarly due to poor sustainability of shopping and the profit taking that also takes place here, turning this way alarm lights for long at the present level positions.
Being this immediate stage, in the weekly chart is observed clearly that quote has formed a perfect double floor (DS) figure (blue box) and is currently transiting a bullish channel that accelerates its impulse buyer, with possible target at 1.1700 (T1) which is the maximum of the DS figure quoted on 23 August 2015. Although the upwardtrend is firm and oscillators accompany harmonically the price, accumulated by thepair overbought levels need to be cleared, which in principle could lead to a momentary retraction of short term from the current level to the 1.1500 control area and to1.1400 in extension. It is very important to control these two supports, since his break down could put at risk the validity of the figure of double floor and as a result thisanalysis would also lose its validity. Therefore, and in my opinion, waiting for takinglong positions at a level lower that today enjoys greater probability of success for the weekly frame.
The single European currency traded at this hour in the 1.1521, over the course of the last week the price action has been bullish, price has managed to climb from 1.1216 support the current level about 305 pips. Oscillators and stochastic indicate that the trend is at its point of strength, or greater momentum to identify flashbacks and confirm the end of each one of them will mean a market entry to follow the trend, strategies to follow the trend will be indicated during the bullish market cycle. To obtain a solid operational and estimate the depth of kicks and extensions, it is recommended to apply the Elliott wave theory. Then, the analysis of Elliott for the EUR/USD pair in the temporality of 4 hours.
Our main count remains valid, 'C' wave in red has been activated and the price began the upward movement, a time to end the bullish cycle for the wave in question in the area of the 1.1700 approximately when the bullish cycle ends hope a hang pronounced until the target 1.0540. Within the wave "C" in red waves responsible for bring the price up to the goal are marked by a boost of five waves in Orange, the waves one and two orange grade has finished finding three active wave, to estimate the end of the third wave is necessary to apply the Fibonacci tool where extension 161.8% (1.1552) is constituted as objective later four wave will be activated and its end is estimated at 1.1460, immediately the last bullish movement to complete the fifth wave and the same structure for wave "C" in red, bullish end.
Orient your trading plan in the sense of buying at the end of the reversals, use the Fibonacci tool along with support and resistance to estimate reverse zones, then apply your trading strategy finding validations and entering the market at the best possible price with a balance between risk and the probability of success. Keep positive thoughts, and control their emotions. We wish him success in its operations.
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