Wave Analysis:
Despite the EUR/USD pair broke through the lower limit of the upward channel, it still moves within the area of 1.2575 – 1.2480. Taking into account B. Bernanke’s upcoming speech, the pair can keep this pace or go down to the 24th figure level. At the same time, the overall wave situation can enable a quick quotes growth in short term.
Targets for Down Wave 1 or a:
1.2478 – 38.2% Fibonacci
1.2443 – 50.0% Fibonacci
Targets for 5 into 5 Wave:
1.2568 – 161.8% Fibonacci
1.2613 – 200.0% Fibonacci
Summary and Trading Recommendation:
The most probable outcome is the continuation of the uptrend which transformed into 5 wave. Wave 5 into 5 may start its building resulting in the growth towards 1.2568 and 1.2613 which is equal to 161.8% and 200.0% Fibonacci. The uptrend indicates the upward area, fixing below which signifies a stronger decline. If the quotes go below the 4 wave minimum, it will be necessary to revise the wave marking. After wave 5 into 5 building, the pair may begin a new downtrend under wave 1 or a which can push the pair lower to 1.2521 and 1.23478 which is equal to 23.6% and 38.2% Fibonacci.