Wave Analysis:

As it was expected, during yesterday’s trading session EUR/USD started rebound from the correctional level of 50.0%; the price increased by 60 points and reached the level of 1.3080. The pair’s inability to develop an upward move points out the potential to resume downward move and building of full-fledged five-wave structure in terms of descending trend which begins from the high of October 17 (1.3140) and aims the target which is placed lower the level of figure 30. Meanwhile, the wave structure which does not look like a completed one and was formed during 11 to 17 October provides the euro a chance to start the ascending move in terms of future wave 5. Its first target is 1.3205.

Targets for Wave 5 (presumably) Uptrend:

1.3162 and higher – 100% of Fibonacci

Targets for Wave 4 (if it is not completed):

1.3014 – 50.0% of Fibonacci
1.2985 – 61.8% of Fibonacci

Summary and Trading Recommendations:

The uptrend continues its building. Wave 5 started its formation; it is presumably a series of up waves. The upward move is in terms of the wave; its target is 1.3162 and higher which is corresponding to 100.0% of Fibonacci. If the wave 4 is not completed or is transforming into a new downtrend, then the rate may resume its down move towards 1.3014 and 1.2985 which is corresponding to 50.0% and 61.8% of Fibonacci. Short upside channel points out the possibility of wave 5 formation.