Wave Analysis:
Amid the expectations of the next round of QE in the USA and in the respect of the ECB’s promises to purchase Spanish bonds, yesterday’s EUR/USD sessions were positive for the single currency. Having tested the correction level of 38.2%, the price resumed its upward move and gained about 100 points at the end of the day. Thus, taking into account this situation, we can consider the yesterday’s low as the end of wave 5. If it is so, such uptrend can be a sign of the beginning of the wave 5 where the probable target will be the level of 1.2615.
Targets for the Down Wave 1 or a:
1.2521 – 23.6% Fibonacci
1.2478 – 38.2% Fibonacci
Targets for Building Wave 5 into 5:
1,2568 - 161,8% Fibonacci
1,2613 – 200,0% Fibonacci
Summary and Trading Recommendations:
Continuation of the uptrend, which transformed into 5-wave, is the most probable scenario. Wave 5 into 5 may continue its building now with the help of which the acceleration towards 1.2568 and 1.2613 which is equal to 161.1% and 200.0% Fibonacci is possible. Upward channel indicates the upward trend area, fixing below which will demonstrate a stronger downward move. After forming wave 5 into 5, the currency pair may form a new downtrend area in the terms of wave 1 or a which can push the pair towards 1.2521 and 1.2478 which is equal to 23.6% and 38.2% Fibonacci.