Wave analysis:
Having rebounded from the maximum of 1.2975, EUR/USD was consolidating yesterday between the 30th figure level and 1.3050. Thus, we can probably observe now an incomplete correction figure of a would-be wave B of the downtrend which started from the high of May 19. If our projection is correct, the upward move can unfold further to 1.3100 or 1.3150. Meanwhile, there is a possibility that wave A can be longer and more complex due to the depth and length of the upward correction.
Targets for down wave:
1.2975 – 23.6% of Fibonacci
1.2900
Targets for new up wave (possible wave B):
1.3115 – 38.2% of Fibonacci
1.3229 – 50.0% of Fibonacci
Summary and trading recommendations:
It is likely that the instrument have finished the building of wave A of the downtrend near 1.2975 level. In such a way, a rebound from the reached lows and quotes’ upraise can be continued with the same targets near 1.3115 and 1.3229 or 38.2% and 50.0% of Fibonacci. In the course of a new up wave, probably wave C, we expect a decline (after wave B is finished) with the targets placed near 1.2975 or 23.6% of Fibonaci and then lower to 29th figure.
