Wave analysis of EUR / USD for May 15. Euro: new entry to update the lows.


Wave counting analysis:

On Tuesday, May 14, trading ended for EUR / USD by 20 bp lower. The volume of industrial production of the European Union in March decreased by 0.6%, while the sentiment index in the business environment of the ZEW Institute turned out to be completely negative (-1.6). Thus, the news support for the euro currency was absent. The wave pattern again shows the pair’s readiness to build a new descending wave, presumably 3, 3, 3. If this is true, then the decline will continue from the current positions with targets located under the 11 figure. Today, I recommend paying attention to reports on changes in the volume of industrial production and retail sales in America. Strong values may force markets to continue buying US currencies. Two unsuccessful attempts to break through the 50.0% Fibonacci level also speak in favor of a downward wave.

Sales targets:

1.1097 – 161.8% Fibonacci

1.1045 – 200.0% Fibonacci

Purchase goals:

1.1324 – 0.0% Fibonacci

General conclusions and trading recommendations:

The pair is still in the process of building a downward trend. The current wave counting suggests a continuation of the pair’s decline with the targets of 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% Fibonacci. Thus, now, I recommend selling a pair with these goals and restrictive orders above the 50.0% Fibonacci level.

The material has been provided by InstaForex Company – www.instaforex.com