FX.co ★ Wave analysis of the EUR / USD currency pair for October 12, 2017

Analysis of wave counting:

After a short delay near the highs reached on the previous day, at the beginning of yesterday's European session, the pair EUR / USD resumed the upward movement and stopped at 1.1870 at the end of the day. It can be assumed that the currency pair remained in the stage of forming the internal wave structure of wave b, (C), whose first calculated targets are located near the level of the 19th figure. At the same time, overbought indicators indicate the possibility of a price turn in favor of the dollar, so that wave c, a, (C) can acquire signs of a five-wave structure.

The objectives for the construction of the downward wave:

1.1664 - 200.0% of Fibonacci

1.1600

The objectives for the construction of an upward wave:

1.1850 - 1.1900

General conclusions and trading recommendations:

The construction of a new downward trend section continues. It is now possible to resume the decline in quotations within the wave c, (C) with targets located near the calculated mark of 1.1664, which corresponds to 200.0% of Fibonacci and lower about 16 and 15 figures. In the context of the upward wave b, (C), the quotations continue to move away from the reached lows with the targets that are about 19 figures. The overbought indicators warn of the tool's readiness to decline.