Wave Analysis:
The EUR/USD pair continued development of the ascending move on Friday. The pair could not manage to finish it n ear the level of figure 33 and adding about 120 basis points reached the level of 1.3365. Thus, wave 5 of the entire upward wave structure which started its formation from the lows of January 4 (1.3000) became rather protruded. It looked completed by the end of the trading session. Meanwhile, due to the fact that the price broke the level of the December’s highs, the wave of the uptrend starting from November 13 required to introduce corresponding corrections. At the same time it should be noted that the growth of the quotes for 330 basis points that has lasted for two days and the fact that indicators are rather oversold may provoke a dynamic correction to the area of figure 31.
Targets for Down Wave (1 or A):
1.3185 – 61.8% of Fibonacci
1.3149 – 50.0% of Fibonacci
Targets for Up Wave (probably it will be more complex wave 5):
1.3367 and higher – 685.4% of Fibonacci
Summary and Trading Recommendations:
The euro has been trading showing considerable upward movement and as a result corrections were needed to be done in the wave. In terms of new down wave probably 1 or A the downward movement may start to the levels of 1.3185 and 1.3149 which is corresponding to 61.8% and 50.0% of Fibonacci (these targets will be revised). If the current wave gets more complex, then the growth of the quotes may continue with targets placed higher than the level of figure 34. Neither divergence/convergence of MACD nor channels are observed at the moment. Wave structure is ambiguous.
