Wave counting analysis:
During the Wednesday’s trading, the EUR / USD currency pair showed a high amplitude but ended the day at the opening levels. Thus, at the moment, there are still grounds for assuming the construction of wave 3, 1, of a new upward trend section. At the same time, there is a backup option, in which the entire section of the trend, taking its beginning on September 24, will take a 5-waveform. This option is supported by an unsuccessful attempt to break through the 38.2% of the Fibonacci level, which may mean that the pair is ready to build a downward impulse wave.
The objectives for the option with sales:
1.1302 – 0.0% of Fibonacci
The objectives for the option with purchases:
1.1496 – 38.2% of Fibonacci
1.1557 – 50.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair may complete the construction of an upward set of waves and complicate the downward trend. If this assumption is true, the decline in quotations will continue under the 13 figure. The departure of the pair below the minimum of the supposed wave 2 will confirm the pair’s readiness to build a new descending wave. In this case, I will recommend new sales for a pair with targets below 13 figures.
The material has been provided by InstaForex Company – www.instaforex.com