Wave Analysis:
During yesterday’s trading session the EUR/USD pair resumed an upward move and could test the level of 29 figure in the afternoon. Thus, the wave structure of the current correctional descending move, unfolding from the highs, reached September 17 maximum, and now looks like a downward-pointing triangle. At the same time, as the pair tests the correctional level of 38.2%, the triangle looks completed to a large extent. If it is so, we can expect the growth of quotes staring from the lows of the previous day towards new targets which are higher 1.3200. At the same time, there is nothing to hinder the price to move towards the next correctional level (50.0%).
Targets for Down Wave e:
1.2915 – 38.2% of Fibonacci
1.2836 – 50.0% of Fibonacci
Targets for First Wave of New Uptrend:
1.3011 – 23.6% of Fibonacci
1.3092 – 11.4% of Fibonacci
Summary and Trading Recommendations:
The most probable scenario is prolongation of the correctional trend. Wave e continues possibly building a downward trend now, where the descending move to 1.2915 and 1.2836 levels can be observed, 38.2 and 50.0% of Fibonacci respectively. After wave e is worked out, we may observe a growth in the terms of wave 1 of the new ascending movement towards 1.3011 and 1.3092 which is equal to 23.6% and 11.4% of Fibonacci.
