FX.co ★ EUR/USD wave analysis for May 5, 2011

Despite another attempt of the EUR/USD to test the 49 figure level, the price could not fixate above it and rebounded by more than a figure from the reached high by the end of the day. At the same time, current wave situation can help the euro price form an inner wave structure of the 5th wave (in the 5th) developing in the direction of the targets located slightly above the psychologically relevant level 1.5000. In the meantime, strong MACD divergence indicates a deep downside correction.