Wave Analysis:
The downward correction which started on Wednesday becomes more continuous. As a result the EUR/USD pair stayed in the range 33 to 32 figures. Thus, it looks like the pair is correcting in regard to the uptrend which was built between Dec.13 and Dec.19. If it is so, it might be said that in the wave structure this pattern could be considered as wave 3 of 5. It could be assumed after the current correction is finished, probably near the level of 1.3175, the growth of the quotes will gain strength towards the level of figure 34.
Targets for New Down Wave (probably 1 or a or 4 in 5):
1.3170 – 261.8% of Fibonacci
1.3104 – 76.4% of Fibonacci
Targets for Up Wave 5 in 5 (presumably):
1.3256 and higher – 323.6% of Fibonacci
1.3300 – 1.3400
Summary and Trading Recommendations:
Recently the euro has been building a correctional structure. It is in terms of wave 5 of an uptrend. In terms of down wave, probably 4 in 5, drop of the quotes may continue to the levels of 1.3170 and 1.3104, which is corresponding to 261.8% and 76.4% of Fibonacci. After this correctional wave the rise may extend in terms of wave 5 with targets 1.3256 and higher to the price range 1.3300 – 1.3400, which is corresponding to 323.6% of Fibonacci. Inner wave structure of wave 5 will be rather complex.
