Wave Analysis:
In spite of the fact that a decline was observed during yesterday’s trading session, EUR/USD did not manage to overcome the level of figure 29. Thus, taking into account current wave situation, we can assume that the price has started forming of a more complex inner wave structure of wave 3 in 3 (or c). Meanwhile, there is a possibility that a downtrend will be completed after the latest rate’s attempt to consolidate under the level of 1.2900 ended in failure.
Targets for Wave C (presumably) Downtrend:
1.2887 – 61.8% of Fibonacci
1.2855 – 76.4% of Fibonacci
1.2804 – 100.0% of Fibonacci
Targets for Up Wave after C is completed:
1.2861 – 88.6% of Fibonacci
1.2899 – 76.4% of Fibonacci
Summary and Trading Recommendations:
The downtrend consisting of three waves continues building; waves a and b have already been built. In terms of wave c the descending move may continue with targets 1.2887, 1.2855, and 1.2804, which is corresponding to 61.8%, 76.4%, and 100.0% of Fibonacci. After it the ascending wave of a new uptrend may start its development; it may raise quotes to 1.2861 and 1.2899, which is corresponding to 88.6% and 76.4% of Fibonacci. The developing channel keeps the outlook of the downtrend. MACD has formed Convergence; it expresses the readiness of the pair to move upwards.