FX.co ★ EUR/USD wave analysis for May 23, 2011

Since the opening of Friday’s trading the EUR/USD currency pair started to decline and dropped by two figures by the end of the day. At the same time, the high of the previous day at the moment looks like the top of the five-wave upside structure. Given this, we can suppose that the observed false high at 1.4350 indicated the end of the a wave (or 1) of a more complex and continuous correction. If so, in order to continue the upside movement the price must still form the b wave (or the 2nd).