Wave Analysis:
During last week the EUR/USD pair continued to go up and on Friday we could regard this move as uncompleted 5 wave structure. Thus, this 5 wave formation may be wave a in composed in the terms of a longer downtrend correction with the targets at 1.2715. If it is so, after 28 figure is tested, the pair may start a rebound from the earlier reached high in the process of future wave и formation and the price may come back to 1.3000 or higher.
Targets for upward movement in the terms of wave 5 or b:
1.3065 – 11.4% Fibonacci
1.3148 or higher – 76.4% Fibonacci
Targets of down wave (probably 1 or a) or 4:
1.2821 – 38.2% Fibonacci
1.2714 – 50.0% Fibonacci
Summary and Trading Recommendation:
For the last week the euro rate kept its correctional wave which can be wave 4 and wave 1 of downtrend. Thus, the decrease may extend towards 1.2821 and 1.2714 which corresponds to 38.2% and 50.0% of Fibonacci. After the wave is finished, the pair may head up to 1.3065 and 1.3148 and higher which is equal to 11.4% and 76.4% Fibonacci in the terms of wave 5 of the upward channel or correctional wave b. The ascending channel indicates the upward trend. MACD did not form any divergences.