Wave Analysis:
On Friday the EUR/USD pair expressed a downward move from the high of 1.2590 reached earlier. During the second half of the day it managed to test the level of 25th figure which confirmed the end of the 5th one. Thus, taking into account the given wave structure, it is possible to suggest that the pair will continue its upward move from the correctional level. Given that, 1.2615-1.2685 will be the targets of the whole 5 wave.
Targets for forming new down-wave 4 into 5:
1.2478 – 38.2% of Fibonacci
1.2443 – 50.0% of Fibonacci
Targets for forming wave 5 into 5:
1.2568 – 161.8% of Fibonacci
1.2613 – 200.0% of Fibonacci
Summary and Trading Recommendations:
The most probable scenario is the continuation of the uptrend which was formed in 5 wave. Now wave 5 into 5 may start its downward movement in the terms of which the rise towards the levels of 1.2568 and 1.2613 equal to 161.8% and 200.0% of Fibonacci is possible. An ascendant channel demonstrates the upward area of the trend and fixing below it will indicate a stronger downward movement. Before the beginning of 5 into 5 wave, the pair may continue its correction under 4 into 5 wave which may push the currency pair down towards 1.2478 and 1.2443 which correspond to 38.2% and 50.0% of Fibonacci.