We have a clearly formed triangle and price managed to break out from the converging trend lines.
The distance between points A and B = 0.01376 Pips in total.
As such, the first breakout candle opened at 1.28095, thus giving us our first target price at 1.28783, which is nothing but 1.28095 + 0.00688 = 1.28783
Now from this point according to our trading method, we expect price to drop 3 times the distance of 0.00688. Therefore our actual wolfe wave price target is at 1.28783 + (0.00688x3) = 1.26719.
We could round this off to either 1.267 or maybe even 1.27.
In terms of the number of candles from break out to the price high it took a total of 19, one hour candles. So we expect a total of 57 one hour candles (19x3) before we expect price to drop to our expected levels. This is about 2 days and a half.
At the time of publishing this chart, we see 8 candles already being formed. Also note that based on the price high candle, which formed on 02/04 (0600 hours, GMT+2) we expect EURUSD to reach our target price region of 1.27 around Friday afternoon 1500 hours (GMT+2).
Update: Focus on Fundamental Factors
Given the two days estimated for our projected Euro target region, I thought it would be good to also include some fundamental factors that will basically be our driving force for the prices.
On Wedesnday, April 4th the key economic indicator to look at would be the ADP non farm unemployment change and the ISM non manufacturing PMI data.
You might know that last Monday, (1st April) the ISM Manufacturing slumped a bit, falling below expectations of 54.2 which managed to strengthen the Euro as a result, against the US Dollar.
Looking forward, on April 4th, Thursday the key data to look into would be from the Eurozone, with Spanish and Italian PMI data due to be out. There is not much of a surprise here as to what the actual outcome isg oing to be, however it might not be strong enough to push prices to our 'sweet zone'
Thursday is also packed with ECB press conference and the US unemployment claims.
Putting this all into perspective, you can expect the Euro to jump around a bit before settling into our sweet zone.
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