Wave Analysis:
As it was expected, yesterday when trading session opened, the EUR/USD pair continued upward movement; it had managed to add 100 points by the end of the day. It looks like before Ben S. Bernanke speaks, trading will be rather volatile and the price continues growing towards the level of 1.3260. if it is so, then in terms of correctional scenario, the development of current wave structure, the pair will form the second wave, or B, with the high near the correctional level 76.4% or near the level of 1.3340. At the same time information which market may regard as possible delay in QE3 trimming may lead to continuation of formation of uptrend with perspectives.
Targets for down wave (possibly 3 or C):
1.3007 – 38.2% of Fibonacci
1.2911 – 23.6% of Fibonacci
Targets for up wave (possibly c in 2 or B):
1.3163 – 61.8% of Fibonacci
1.3259 – 76.4% of Fibonacci
Summary and trading recommendations:
The pair continues forming up corrective wave 2 or B of the down channel. In terms of wave c in 2 or B, increase with targets placed near the levels of 1.3163 и 1.3259 is expected, which is corresponding to 61.8% и 76.4% of Fibonacci. After the completion of building of this wave drop of the quotes starts in terms of wave 3 or C with targets, placed near the levels of 1.3007 and 1.2911, which is corresponding to 38.2% and 23.6% of Fibonacci. Failure to break the level of 1.3259 suggests that down wave is ready to be built.
