FX.co ★ Wave analysis of EUR / USD for July 23. Euro is still ready for a new and powerful fall

Analysis of wave counting:

During the Friday trading session, the EUR / USD pair gained about 100 bp from the low of the day. Thus, the conclusion emerges about the transformation of the whole section of the trend. If this assumption is correct, the decline of quotations within the framework of the global wave 5 will resume after the end of wave e in the 4th. The wave 4 now even more common looks like a diagonal triangle, and wave e - at the upper generatrix the narrowing channel of the line. An unsuccessful attempt to break this line will confirm the pair's readiness for a long decline. A success, on the contrary, will lead to the necessity of making counting.

Goals for sales:

1.1600

1.1440 - 323.6% Retaliation in the Repair Area

Goals for shopping:

1,1834 - 200.0% by Fibonacci

1.1957 - 161.8% Retaliation

General conclusions and trading recommendations:

The proposed wave 4 complicated its internal structure. Thus, I still expect a resumption of the pair's decline and recommend the formation of sales, but now the key is the upper line of the tapering triangle. An unsuccessful attempt at a breakthrough will confirm the expectations of the bearish wave 5 construction. A Breakthrough of this line will lead to the revision of the wave counting, and in this case.