Analysis of wave counting:
Despite the significant amplitude of the price change (about 100 percentage points), the currency pair EUR / USD was still unable to determine the direction of the movement and completed yesterday's trading near the opening day. It can be assumed that the currency pair remained in the stage of formation of the wave b, B, (C), which by the close of the American session retained the elements of some incompleteness. If this is the case, then an attempt to test the level of the 24th figure can lead to a price turn in favor of the dollar, which in turn will indicate the beginning of the future wave c, B, (C). At the same time, as mentioned earlier, the currency pair retains the potential for the growth of quotations to the level of 1.2500 and the formation of the wave 4, 5, A, (C) as a fairly complex correction triangle.
The objectives for building a downward wave:
1.2200 - 1.2100
The objectives for building an upward wave:
1.2400
1.2537 - 261.8% of Fibonacci
1.2600
General conclusions and trading recommendations:
The wave counting on the instrument is complicated and confusing. The increase in quotations may continue within the expected wave b, B, (C) with targets about 24 figures, after which the current wave counting allows a resumption of the decline within the wave c, B, (C) or even more complicated wave 4, 5, A, (C) with goals below 22 figures.
