Wave Analysis:
As it was expected, the EUR/USD pair was forming an ascending corrective wave of an assumed wave 2 yesterday. Either wave 2 or wave B will be a component of a more complex and extended downward move. If it is so, then possible targets for wave c (in 2 or B) are in range 1.3150 to 1.3180. Meanwhile, we cannot exclude that the current upward move may look like a wave structure of a diagonal triangle.
Targets for Down Wave 3 or C:
1.2984 and lower – 423.6% of Fibonacci
Targets for Up Wave 2 or B:
1.3112 – 38.2% of Fibonacci
1.3146 – 50.0% of Fibonacci
Summary and Trading Recommendations:
The euro continues building of a new downward pattern of the trend. Its first wave was completed. An upward corrective wave started its building. In terms of down wave 3 or C, drop of the quotes may continue towards the level of 1.2984 and lower which is corresponding to 423.6% of Fibonacci. Before the wave stats its building, the rise of the quotes may extend in terms of wave 2 or B with targets placed near the levels of 1.3112 and 1.3146 which is corresponding to 38.2% and 50.0%. The instrument has left the bullish trend; it also confirms the fact that a new downward trend continues its building. In terms of wave 2 or B three-wave corrective structure is observed quite clear.
