During trading sessions, the upward movement started this week continued and amid the news about the following QE3 the EUR/USD pair reached the level of 1.3170. Thus, the quotes climbed more than six and a half figures during more than one week which can signify about continuation of such trend. However, despite such positive and dynamic growth, inner wave structure of wave 3 is a little bit unfinished which enables the targets near 32 figure.
Targets for correctional movement in terms of wave 5 in с or 3:
1.3148 and higher – 76,4% Fibonacci
Target for down wave scenario (probably 1 or a):
1.2937 – 61.8% Fibonacci
1.2766 – 50.0% Fibonacci
Summary and Trading Recommendations:
The euro was moving within the correctional trend area which can be called impulsive. Thus, this week the quotes growth in terms of wave 5 in с or 3 towards the level of 1.3148 and higher which is equal to 76.4% Fibonacci is possible. However, after this wave is built, the pair may fall down towards 1.2937 and 1.2766 which is equal to 61.8% and 50.0% of Fibonacci in the terms of the first wave of the downtrend or wave 4. However, the upward channel indicates prolongation of uptrend. MACD do not show any divergences.