Analysis of wave counting:
In the last day of the previous week, the EUR/USD pair began with a downward movement and amid conditions of quite high volatility, it was still able to test the level of the 16th figure. Thus, it seems that the currency pair has the preconditions for the completion of the 2nd wave and the transition to the stage of formation of the third wave, in a, in a, in c, in (C). If this is the case, this second wave, in a, in a, in c, in (C), will not take an even more complicated form, then the currency quotes will continue to decline to 1.1550, or even to 1.1450.
Targets for a downward wave option:
1.1556 - 76.4% by Fibonacci
1.1450 - 100.0% by Fibonacci
Targets for an upward wave option:
1.1664 - 38.2% by Fibonacci
1.1705 - 50.0% by Fibonacci
General conclusions and trading recommendations:
The construction of a new downward trend segment is continuing. Now it is possible to resume the lowering of quotes within wave 3, in a, in a, in, c, in (C) with targets located near the estimated marks of 1.1556 and 1.1450, which corresponds to 76.4% and 100.0% Fibonacci. An unsuccessful attempt to break the 1.1674 mark allegedly led to the completion of wave 2, a, a, c, c (C). The downward movement preserves the prospects of constructing a downtrend section of the trend.
