Analysis of wave counting:
Yesterday's statement by the new head of the Federal Reserve, J. Powell, that "a number of economic indicators strengthen the confidence that inflation is accelerating towards the target level" positively affected the health of the dollar, allowing the currency pair EUR / USD to resume the downward movement and reached the level of 1.2220 closer to the end of trading. The resulting wave situation allows us to assume that as a result of this reduction, the currency pair significantly complicated the internal wave structure of the wave 4, 5, A, (C). If this is the case, then from the minimum yesterday, we can expect a resumption of the growth of quotations and the transition of the currency pair to the stage of formation of the future wave 3, 5, 5, A, (C). At the same time, if the price falls to the level of the 22nd figure, the currency pair is likely to confirm the probability of forming the wave 4, 5, A, (C) as an extended correctional triangle.
The objectives for building a downward wave:
1.2200 - 1.2100
The objectives for building an upward wave:
1.2600 - 1.2700
General conclusions and trading recommendations:
The construction of an upward wave A, (C), continues, whose internal marking continues to become more complicated. The increase in quotations may resume within the framework of wave 3, 5, 5, A, (C) with targets that are around 26 figures, if the correctional wave 2 completes its construction in the next few hours. Otherwise, the entire wave 4, 5, A, (C) can take the form of a complex correction triangle.
