Wave marking analysis: In the course of yesterday’s trades, the EUR/USD pair continued the daily renewal of the previously reached highs. The breakdown of the correction level 61.8% has opened the way to the next level – 76.4%. The point 1.3340 is expected to be reached soon. Therefore, despite the evident MACD divergence, the inner wave structure of the ascending part of the trend starting from April 23 is getting more and more complicated. Thus, the wave marking is to be amended. At the same time it is necessary to consider that retention of long positions seems to be quite risky, as the turn of the market against the euro can start in any time.
Targets for the resumption of the descending part of the trend within the wave 3 or C: 1.3087 – 23.6% of Fibonacci 1.3039 – 11.4% of Fibonacci
Targets for the wave E in 2 or B: 1.3295 – 76.4% of Fibonacci 1.3343 – 88.6% of Fibonacci
General conclusions and trading recommendations: The recent growth of quotes can be considered as a quite complicated wave 2 or B. The current ascending movement within the wave E has targets 1.3295 and 1.3343 which is equal to 76.4% and 88.6% of Fibonacci respectively. The MACD divergence points at the possible reversal of quotes to the benefit of the dollar, as the wave 2 or B is nearly completed. If the current marking is true, then the wave 3 or C with targets seen at 1.3087 and 1.3039 can begin its formation almost from the current points.
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