Wave Analysis:
During yesterday’s trading session the EUR/USD pair continued to slowly develop its uptrend correction which began on the 1st of October. Thus, the pair probably started to form wave с in potential wave b as a part of more complex and longer downtrend correction. If it is so, the targets for wave b can be placed near the level of 30 figure. At the same time, its inner structure, which looks quite complete, can enable the price fall from the last day high.
Targets for Down Wave c:
1.2836 – 50.0% Fibonacci
1.2758 – 61.8% Fibonacci
Targets for Wave b:
1.3011 – 23.6% Fibonacci
1.3092 – 11.4% Fibonacci
Summary and Trading Recommendations:
The most probable outcome is continuation of the correction area. Wave b is building the downtrend in the terms of which the acceleration towards 1.3011 and 1.3092 is possible which is equal to 23.6% and 11.4% Fibonacci. After wave и is completed, we can go down towards 1.2836 and 1.2758 in the terms of this wave which is equal to 50.0% and 61.8% Fibonacci.
