FX.co ★ EUR/USD Wave Analysis for October 4, 2012

Wave Analysis:
Yesterday’s trading the EUR/USD pair was trading within the price range and failed to develop the uptrend which was registered on Monday. The situation may result into completion of inner wave structure of supposed wave b, in this case the price can fall against the euro. At the same time we also should take into account the scenario which suggests the following sideways movement where wave b will take a shape of horizontal triangle.

Targets for Down Wave c:
1.2836 – 50.0% Fibonacci
1.2758 – 61.8% Fibonacci

Targets for Wave b (if not completed):
1.3011 – 23.6% Fibonacci
1.3092 – 11.4% Fibonacci

Summary and Trading Recommendations:

The most probable outcome is continuation of correctional trend area. Wave b is still building the downtrend in the terms of which the rise towards 1.3011 and 1.3092 is possible which is equal to 23.6% and 11.4% Fibonacci. We can also suggest that this wave has already finished its building. After wave b is worked out, the fall towards 1.2836 and 1.2758 can be observed which is equal to 50.0% and 61.8% Fibonacci.