Analysis of wave counting:
The EUR/USD pair trades of the previous week began with an upward movement and after the price grew by 200 percentage points to the mark of 1.1860 and finished the Friday session near the level of 1.1800. The resulting wave situation makes it to consider the lows of November 7 (1.1555) as the completion of the entire wave a, in C, and the subsequent growth of quotes as the process of the formation of wave b, in C. If this is the case, testing the level of the 19th figure can lead to a reversal of the currency pair in favor of the dollar and its transition to the stage of formation of the wave c, in C.
Targets for an upward wave option:
1.1800 - 1.1900
Targets for a downward wave option:
1.1510 - 38.2% by Fibonacci
1.1330 - 50.0% by Fibonacci
General conclusions and trading recommendations:
The trading instrument continues to build the first waves in the future C. This week, it is possible to resume the decline in quotes within the wave c, in C with targets located near the estimated marks of 1.1510 and 1.1330, which corresponds to 38.2% and 50.0% by Fibonacci. The assumed wave b, in C can be completed or is nearing its completion.
