Analysis of wave counting:
Yesterday's statement by Chinese officials on the need to consider the possibility of stopping purchases of US government bonds caused a surge in volatility in the currency market and led to an increase in the price of the EUR / USD pair to the area of 1.2020 mark, as well as its subsequent rollback of 80 pp from the already achieved maximum. The current wave situation allows us to assume that as a result of such an upward movement, the currency pair practically formed the wave b, a, c, in the 4th, A, (C). If this is the case, then to complete the wave a, c, in the 4th, A, (C), the currency pair can resume the decline of quotations to the level of the 19th figure and further, to the mark of 1.1875.
The objectives for the construction of a downward wave:
1.1875 - 61.8% of Fibonacci
1.1825 - 76.4% of Fibonacci
The objectives for the construction of an upward wave:
1.2000 - 1.2100
General conclusions and trading recommendations:
The construction of the downward trend section continues. The assumed wave b, at 4, A, (C) has completed its construction. If this assumption is correct, then the decline in quotations will continue with the targets near the estimated levels of 1.1875 and 1.1825, which corresponds to 61.8% and 76.4% of Fibonacci, and lower. An unsuccessful attempt to break the mark of 1.1916 led to the withdrawal of quotations from the achieved lows.