Wave Analysis:
During Friday’s trading session, the EUR/USD pair failed to continue its upward movement and rebound to its previous positions. Taking into account the given indicators, there is a possibility that the pair may head towards reached earlier highs. At the same, unconvincing test of the correctional levels may enable the building of inner wave structure of the current correctional downtrend. In the result the price will come closer to 29 figure.
Targets for Down Wave 3 or c:
1.2915 – 38.2% Fibonacci
1.2836 – 50.0% Fibonacci
Targets for Wave 4 or First Uptrend Area:
1.3011 – 23.6% Fibonacci
1.3092 – 11.4% Fibonacci
Summary and Trading Recommendations:
The continuation of correctional trend is the most probable now. It is likely that wave 3 or с will resume its descend trend in the terms of which the fall towards 1.2915 and 1.2836 is probable which is equal to 38.2% and 50.0% Fibonacci. The waves are very short that is why wave 2 or b has already formed. After wave 3 is worked out, we may observe growth in the terms of wave 4 or 1 of the new ascending movement towards 1.3011 and 1.3092 which is equal to 23.6% and 11.4% Fibonacci. Double convergence of MACD indicator signifies the likelihood of the upward trend formation.