Wave Analysis:
After Friday’s rally, the EUR/USD pair is flat again. The attempt to test 26 figure again did not add dynamics to the pair. It seems that the currency pair should finish building of the inner wave structure of wave 3 in 5. If it is so, the price will grow to the levels of 1.2640 – 1.2650 and may result in the rebound towards 1.2550.
Targets for Down Wave 4 in 5:
1.2557 – 11.4% Fibonacci
1.2521 – 23.6% Fibonacci
Targets for Wave 3 in 5:
1.2613 – 200.0% Fibonacci
1.2640 – 423.6% Fibonacci
Summary and Trading Recommendations:
The most probable outcome is the continuation of the uptrend which transformed into 5 wave. Wave 3 in 5 may resume the building of the uptrend area in the terms of which the rise towards 1.2613 and 1.2640 is most likely which is equal to 200.0% and 423.6% of Fibonacci. The uptrend channel indicates the ascending area of the, fixing below which will signify a stronger decline. After wave 3 in 5 is formed, the pair may begin the wave 4 in 5 (correctional) which may push the currency pair lower towards 1.2557 and 1.2521 which is equal to 11.4% and 23.6% of Fibonacci.