Analysis of wave counting:
The breakdown of the level of the 20th figure and the growth of the pair EUR / USD to the mark of 1.2070 provoked the subsequent price drop by almost 250 percentage points from the maximum reached on Tuesday. The current wave situation allows us to assume that despite such a significant growth in quotations, the currency pair remained in the formative stage of the 5th wave, c, e, B. At the same time, the strong divergence of the MACD indicates the possibility of beginning a fairly dynamic downward movement, which may indicate the beginning of the future wave C, the main downward trend.
Targets for the upward wave option:
1.2036 - 300.0% of Fibonacci
1.2100
Targets for the downward wave version:
1.1547 - 200.0% of Fibonacci
1.1400
General conclusions and trading recommendations:
The instrument continues to build an upward wave B, which takes on an increasingly complex form. This week, the increase in quotations may continue in the context of a complicated wave с, е, В with targets located near the estimated mark of 1.2036, which corresponds to 300.0% of Fibonacci and above about 21 figures. After the completion of the construction of this wave, the instrument will begin to decrease within the framework of wave C with the first targets located around 15 figures. The MACD divergence warns about the tool's readiness to decrease.
