FX.co ★ EUR/USD Wave Analysis for November 1, 2012

Wave Analysis:

The yesterday’s break of the level of figure 30 enabled the EUR/USD pair to build five-wave structure in terms of an uptrend, which starts from the Monday’s low. Meanwhile, the pair could not manage to consolidate at that level and as a result it rebounded 60 points from the day’s high. Thus, it may be assumed that the price is forming wave b. If it is completed, then probably the rate will resume the growth in terms of a more lengthy upward correction and it will test again the level of 1.3000.

Targets for Wave B Uptrend:

1.2945 – 61.8% of Fibonacci
1.2899 – 76.4% of Fibonacci

Targets for Up Wave 3 or C:

1.3019 – 38.2% of Fibonacci
1.3065 – 23.6% of Fibonacci

Summary and Trading Recommendations:

The downtrend consisting of three waves is probably completed. In terms of wave 2 or b the downtrend may continue towards 1.2945 and 1.2899, which is corresponding to 61.8% and 76.4% of Fibonacci. After it up wave 3 or c of the uptrend presumably may start its building. It may shift the rate towards 1.3019 and 1.3065, which is corresponding to 38.2% and 23.6% of Fibonacci. The break of the channel’s line confirms the formation of a new uptrend.