Analysis of wave counting:
The attempt to continue the declining movement that began on Monday ended yesterday with a failure and after reaching the level of 1.2155, the EUR/USD pair rebounded by almost 120 percentage points from the lows reached at the beginning of the American session. The current wave situation makes it possible to assume that the currency pair can complete the formation of the wave a, in B, in (C) and mark the beginning of the wave b, in this B, in (C). At the same time, the currency pair retained the potential for growth of quotations to the levels of the 25th figure and a return to the scenario providing for the formation of the 4th wave, in the 5th, in A, in (C) as a complex and extended correctional triangle.
Targets for a downward wave option:
1.2200 - 1.2100
Targets for an upward wave option:
1.2537 - 261.8% by Fibonacci
1.2600
General conclusions and trading recommendations:
Wave counting on the trading instrument is complicated and confusing. The rise in quotations may resume within wave 3, at 5, at 5, at A, at (C) or b, at B, in (C) with targets around 26 figures, but current wave counting also allows continuation of the decline within the wave a, in B, in (C) or complicated 4, in the 5th, in A, in (C) with targets located below 22 figures. Convergence MACD_aka warns of the readiness for the withdrawal of quotations from the reached lows.
