Wave Analysis:
The EUR/USD pair was trading in a narrow price range and failed to get over the Friday’s high. Taking this into account, inner 5 wave structure is now almost finished which may enable the beginning of the longer correctional movement. At the same time, considering the previous dynamics of the uptrend there is a great opportunity that 5 wave may bу longer and of more complex structure.
Targets for down wave, probably 1 or a:
1.2993 – 523.6% Fibonacci
1.2876 – 423.6% Fibonacci
Targets for wave 5 in 5 (may be more complex):
1.3184 and higher – 685.4% Fibonacci
Summary and Trading Recommendations:
It is most probable that the upward trend will extend. Now we can see that wave 5 in 5 continues its building in the terms of which we may observe acceleration towards 1.3184 and higher which is equal to 685.4% Fibonacci. This wave is constantly extending. After wave 5 in 5 is finished, the downward are with the targets of 1.2993 and 1.2876 will probably start forming which coincides to 523.6% and 423.6% Fibonacci in the terms of wave one. An ascending channel lost its applicability as the price went far above it which proves once again the strength of the current trend.