Wave marking analysis:
Resulting from yesterday’s trades the EUR/USD pair continued its development of the descending movement that has begun recently. By the end of the American session it has lost more than 120 pips. Proceeding from the inner dimension of the supposed 3rd wave of the current downside movement and elaboration of the target corresponding to the 1.3110 level, we can suggest that the reversal of quotes to upwards confirmed the fact that 3rd wave was completed. If that proves to be so, then, when the uprising correction within the prospect wave 4 is completed, the pair is expected to resume its decline towards the 1.3025 level or March low (1.3005).
Targets for the wave 3 in 1 or A:
1.3094 – 76.4% according to Fibonacci
1.3048 – 88.6% according to Fibonacci
Targets for the wave 4 in 1 or A:
1.3148 – 61.8% according to Fibonacci
1.3192 – 50.0% according to Fibonacci
General conclusions and trading recommendations:
The ascending part of the trend within wave 3 in 1 or A has targets 1.3094 and 1.3048 corresponding to 76.4% and 88.6% of Fibonacci. The breakout of the ascending channel also indicates the formation of the new part of the trend. The inner wave structure of the wave 1 or A implies the further descent, as presently the wave 3 in 1 or A is apparently being formed. Thus, the whole wave may be completed near the point 1.3100. As to the wave 4 in 1 or A, it can raise the pair towards 1.3148 and 1.3192 which is equal to 61.8% and 50.0% of Fibonacci
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