Wave Analysis:
During yesterday’s trading session, the EUR/USD pair was within the price range. At the end of the US trading session, the pair could go down by 50 points to the level of 1.2750. Thus, taking into consideration this situation, we can suggest that the pair is forming the wave 5. If it is so, after the current correction is completed, the price should resume the upward move towards the targets placed between 1.2875-1.2900. Meanwhile, in the terms of the formed wave structure, there is a way for its further development, in which the market swing in favor of a deeper correction may practically begin from the current prices.
Targets for New Down Wave (probably 1 or a):
1.2758 – 323.6% Fibonacci
1.2685 – 261.8% Fibonacci
Target for Wave 5 in 5:
1.2876 and higher – 423.6% Fibonacci
Summary and Trading Recommendations:
The most probable outcome is the continuation of the uptrend channel. Now wave 5 resumes the building of the uptrend area in terms of which the rise towards 1.2876 and higher is probable, which is equal to 423.6% of Fibonacci. The uptrend channel indicates the ascending area, fixing below which will signify a stronger decline. After wave 5 in 5 is formed, the pair may begin the new downtrend with the first targets of 1.2758 and 1.2685, corresponding to 323.6% and 261.8% of Fibonacci. MACD indicator did not form any divergences.