Wave Analysis:
During yesterday's trading session, EUR/USD failed to get over 1.2570 which resulted in price drop towards the lower line of the uptrend channel. Thus, the currency pair is of wait-and-see attitude which enables the growth within the boundaries of wave 5. In case of negative news, the pair may resume its downward move towards 24-level figure. Given that, indicators demonstrate unstable balance in which the market can operate till Bernanke’s speech on Friday.
Targets for Down Wave 1 or a:
1.2521 – 23.6% Fibonacci
1.2478 – 38.2% Fibonacci
Targets for Wave 5 into 5:
1.2568 – 161.8% Fibonacci
1.2613 – 200.0% Fibonacci
Summary and Trading Recommendations:
The most probable outcome is the continuation of the uptrend channel which was formed in 5 wave. Wave 5 into 5 may also continue its move enabling the rise towards 1.2568 and 1.2613 which is equal to 161.8% and 200.0% Fibonacci. The uptrend channel indicates the upward trend area, fixing below which will indicate a stronger downward move. After 5 into 5 wave formation, the pair may start going down under 1 or a wave which may push the currency pair lower towards 1.2521 and 1.2478 which is equal to 23.6% and 38.2% Fibonacci.