Analysis of wave counting:
After failing to make a reversal last Wednesday, the EUR/USD pair resumed the upward movement and, having broken through the September high of last year (1.2090), tested the level of the 22nd figure. The current wave situation makes it possible to assume that, despite such a significant growth in quotations, the currency pair remained in the stage of formation of the 4th wave, in A, in (C), in which its internal wave b assumed an unusual and strongly elongated appearance. If this is the case, then the continuing divergence of the MACD_aka indicates that, practically from the high reached on Friday, the currency pair will still begin to decline and signify the beginning of the future wave c, in the 4th, in A, in (C).
Targets for an upward wave option:
1.2200 - 1.2400
Targets for a downward wave option:
1.1732 - 23.6% by Fibonacci
1.1510 - 38.2% by Fibonacci
General conclusions and trading recommendations:
The trading instrument continues to build the upward trend section. This week, it is possible to resume the decline in quotations within the wave c, at 4, in A, in (C) with targets located near the estimated marks of 1.1732 and 1.1510, which corresponds to 23.6% and 38.2% of Fibonacci . The divergence of the MACD_aka indicates the willingness of the trading instrument to build a downward wave. The wave b in 4 greatly complicated its internal wave structure.
