Analysis of wave counting:
During the trades of the past week, the pair EUR / USD began with a downward movement and lost more than 250 percentage points in price and reached the level of 1.2205 at the end of the Friday session. The resulting wave situation allows us to assume that the currency pair confirmed the transition to the stage of formation of the wave 4, 5, A, (C) from the maximum on January 25 (1.2535). If this is so, then from the already reached minimum on Friday, the currency pair may resume the growth of quotations and mark the beginning of the wave 5, 5, A, (C). At the same time, under the existing conditions, there is a probability of transformation of this wave 4, 5, A, (C) in the form of an extended correctional triangle, with the prospect of reducing the price to the level of 1.2125, although for a more complex inclined trajectory.
The objectives for the option with an upward wave:
1.2532 - 200.0% of Fibonacci
1.2600
The objectives for a downward wave option:
1.2224 - 38.2% of Fibonacci
1.2127 - 50.0% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build the upward trend section. This week, it is possible to reduce quotations within wave 4, 5, A, (C) with targets located near the calculated marks of 1.2224 and 1.2127, which corresponds to 38.2% and 50.0% of Fibonacci.
