Analysis of wave counting:
Having published yesterday's winning closing statement, J. Yellen stepped down as the Fed chairman, which, however, did not cause appreciable emotions in the foreign exchange market, and therefore, after rising to around 1.2475, the price of the EUR / USD pair retreated by almost 90 pp from the maximum of the European session. The current wave situation allows us to assume that the currency pair remained in the stage of formation of the internal wave structure of wave a, 4th, 5th, A, (C), which by the end of the last day did not yet seem complete. At the same time, as mentioned earlier, the currency pair retains the potential for even more complicated the entire 3rd wave, 5th, A, (C) and the resumption of the growth of quotations, at least to the level of the 26th figure.
The objectives for building a downward wave:
1.2224 - 38.2% of Fibonacci
1.2127 - 50.0% of Fibonacci
The objectives for building an upward wave:
1.2500 - 1.2600
General conclusions and trading recommendations:
The construction of the upward wave A, (C), the internal marking of which has incurred changes, continues. The assumed wave 3, 5, A, (C), probably completed its construction near the calculated mark of 1.2476, which corresponds to 423.6% of Fibonacci. If this is the case, within the limits of the correctional wave 4, the quotes may resume from the peaks reached with targets near the estimated levels of 1.2224 and 1.2127, which is equivalent to 38.2% and 50.0% of Fibonacci.