Wave Analysis:
EUR/USD has tested correctional level of 50.0% yesterday once again and dropped 50 points from the earlier reach high. In the terms of unsuccessful continuation of the downward movement, the area which was formed from September 17 highs looks like uncompleted 5 wave structure. If it is so, there is a possibility that the pair will resume its descending trend from the level of 1.2950 (or higher) towards the targets placed near 27 figure.
Targets for Down Wave 5:
1.2836 – 50.0% Fibonacci
1.2758 – 61.8% Fibonacci
Targets foe Wave 4 or 1 of the new upward trend:
1.2915 – 38.2% Fibonacci
1.3011 – 23.6% Fibonacci
Summary and Recommendations:
The most probable scenario is continuation of correctional trend which may be 5 wave structure. Downtrend wave or uptrend wave 1 may already start its building in the terms of which the rise towards 1.2915 and 1.3011 which is equal to 38.2% and 23.6% of Fibonacci is expected. After wave 4 is worked out, we can see a fall in the terms of wave 5 to 1.2836 and 1.2758 or 50.0% and 61.8% of Fibonacci respectively. A short downward channel may indicate the building of bearish pattern.