Wave Analysis:
As it was expected, during yesterday’s trading session the EUR/USD pair continued upward move and tested the level of figure 30. Taking into account a current wave structure, we can assume the pair finishes formation of wave 1 in the future wave 5 of the whole uptrend which starts from the low of November 13. If it is so, after a pullback from yesterday’s high, the price resumes growth towards the first possible target for this wave 5 placed near the level of 1.3170.
Targets for new Down Wave:
1.2960 – 38.2% of Fibonacci
1.2908 – 50.0% of Fibonacci
Targets for Up Wave 5 (or correctional wave 2 or b):
1.3023 – 23.9% of Fibonacci
1.3076 – 11.4% of Fibonacci
Summary and Trading Recommendations:
Recently the euro has been trading in a bearish mood. It may be considered as wave 4 of a downtrend or the first waves of a new downtrend. In terms of the new downtrend the drop of the quotes may start towards the levels of 1.2960 and 1.2908 which is corresponding to 38.2% and 50.0% of Fibonacci. On the whole, rise of the quotes may continue with the targets 1.3023 and 1.3076 which is corresponding to 23.6% and 11.4% of Fibonacci in terms of wave 5 of the uptrend or correctional wave 2 or b in terms of the downtrend.
