Analysis of wave counting:
At the beginning of the European session yesterday, the EUR / USD pair continued to develop a downward movement. Having lost more than 60 percentage points from the Asian session's high, it completed the day below the level of the 18th figure. It can be assumed that the currency pair still remained in the formation stage of the internal wave structure of the wave c, in a, in c, in a, in (C). In this case, from the yesterday's low or after the price falls to the level of 1.1750, the currency pair will execute a reversal and mark the beginning of the wave b, in c, in a, in (C). At the same time, the current position of MACD earlier indicates the probability of the resumption of price growth, with the prospect of a significant complication of the wave structure of wave b, in a, in (C).
Targets for building a downward wave:
1.1792 - 50.0% by Fibonacci
1.1736 - 38.2% by Fibonacci
Targets for building an upward wave:
1.1946 - 76.4% Retaliation in 2011.
1.2000
General conclusions and trading recommendations:
The construction of the downward trend section continues. The assumed wave b, in a, in (C) has completed its construction. If this assumption is correct, then the reduction of quotations will continue with the targets located near the calculated marks of 1.1792 and 1.1736, which corresponds to 50.0% and 38.2% Fibonacci within the assumed wave a, c, a, c (C), and below. Convergence MACD show signs of willingness of the instrument to form an upward wave.* The presented market analysis is informative and does not constitute a guide to the transaction.
