Wave analysis:
Starting yesterday’s trading session with the drop the EUR/USD pair after the Minutes of FOMC meeting were published reached the level 1.3335, having lost about 100 points. Meanwhile, up wave structure which was formed after August 15 looks as the next series of waves abc at the moment. Thus, we may assume that after August 8, the pair is in the correction which takes a shape of the diagonal triangle. If it is so, then it looks like current price drop will develop towards lower boarder of upward channel which passes under the level of figure 33 figure.
Targets for new down wave:
1.3304 – 23.6% of Fibonacci
1.3244 – 38.2% of Fibonacci
Targets for up wave:
1.3440 – 1.3475
Summary and trading recommendations:
The pair continues building of upward trend channel which can transform into a diagonal one. Now formation of up wave with targets placed in the range 1.3440 – 1.3475. After completion of building of this wave, the pair may start building of bearish trend channel with targets placed near the levels of 1.3304 and 1.3244, which is corresponding to 23.6% and 38.2% of Fibonacci. Bullish channel supports the outlook of upward trend pattern development.
