Wave Analysis:
As it was expected, the EUR/USD pair continued its downward move and a breakthrough of figure 28 stopped further price drop. Thus, yesterday’s low is rather a completion of wave c (in d) in the inner wave structure of an expected wave B, which looks like an ascending triangle. If it is so, before the uptrend resumes the pair has to move in the area of figure 29; thus, it has formed wave e of the triangle.
Targets for Wave D in B of Downtrend (if it is not completed):
1.2767 – the minimum of wave c in d (current)
Targets for Up Wave E in B:
1.2855 – 200.0% of Fibonacci
1.2879 – 161.8% of Fibonacci
Summary and Trading Recommendations:
The descending three-wave pattern of the trend has transformed; the whole wave structure is revised. In terms of wave d in B the down move may continue towards targets, which are lower than 1.2767; it is corresponding to the current low of the wave c in d. After it the ascending wave e in B may start its building; it may raise the rate towards 1.2855 and 1.2879, which is corresponding to 200.0% and 161.8% of Fibonacci. Wave B transforms into an ascending triangle, wave d has presumably finished its formation. MACD is oversold, which points out that the pair is ready to start building of up wave e in B.
