Wave Analysis:
After a rally that was observed last week during yesterday’s trading session, the EUR/USD pair halted and was consolidating slightly lower than the level of 1.3170. Meanwhile, inner wave structure of wave 5 looks to be to a great extent completed. If it is so, taking into account a considerable divergence of MACD was observed, downward correction is about to begin from the almost reached high at 1.3185 in the short term. At the same time amid thin market the EUR/USD pair may continue upward move at least till the level of 1.3250.
Targets for New Down Wave (probably 1 or a):
1.3076 – 11.4% of Fibonacci
1.3023 – 23.6% of Fibonacci
Targets for Up Wave 5:
1.3170 and higher – 261.8% of Fibonacci
Summary and Trading Recommendations:
The euro has been moving higher in recent days, which can be considered as wave 5 of uptrend. In terms of new down wave of a new downward pattern the descending movement may start to the levels of 1.3076 and 1.3023 (these targets will be revised), which is corresponding to 11.4% and 23.6% of Fibonacci. Currently the upward move of the quotes may continue with target 1.3170 and higher, which is corresponding to 261.8% of Fibonacci. Inner wave structure of wave 5 may be rather complex. The level of 1.3170 still does not permit the quotes to rise upwards. Divergence of MACD points out the instrument is ready to build at least a correctional wave in terms of 5; completion of the entire uptrend is possible as well.
