Wave Analysis:
As it was expected, the EUR/USD pair rebounded from 1.3170 high and lost 90 points by the end of the day. If this downward move is unfolding according to the correctional scenario, it is relative to 5 wave of the uptrend which began on August 16. If it is so, the targets for correction can be placed near 29 figure.
Targets for down wave, probably 1 or a:
1.3 011 – 23.6% Fibonacci
1.2915 – 38.2% Fibonacci
Targets for wave 5 in 5 (if it is more complex):
1.3184 and higher – 685.4% Fibonacci
Summary and Trading Recommendations:
Continuation of the upward movement is most probable scenario now as wave 5 in 5 is quite short and yesterday’s rebound may indicate the beginning of the correctional price movement. Now, wave 1 or a probably began its building in the terms of which we can see a fall towards 1.3011 and 1.2915 levels which is equal to 23.6% and 38.2% Fibonacci. If this is a false statement, the pair may continue its upwards trend with the target at 1.3184 and higher which coincides with 685.4% Fibonacci in the terms of wave 5 in 5. The ascending channel did not lose its applicability but if the price goes lower, it will prove the building of downward move. MACD divergence marked the beginning of the correctional wave.