Wave Analysis:

During Friday’s trading session the volatility was high; the EUR/USD pair could not continue development of the downtrend. As a result, the price was in the range 1.2900 to 1.2950. Thus, taking into account the current wave situation, it seems that the pair is trying to build the first waves of the inner wave structure in the future wave 3 (or c). If it is so, the further decline towards figure 28 may be observed.

Targets for Wave C (presumably) Downtrend:

1.2855 – 76.4% of Fibonacci
1.2804 – 100% of Fibonacci

Targets for Up Wave after C is completed:

1.2861 – 88.6% of Fibonacci
1.2899 – 76.4% of Fibonacci

Summary and Trading Recommendations:

The downtrend consisting of three waves continues building; waves a and b have already been built. In terms of wave c the descending move may continue with targets 1.2855 and 1.2804, which is corresponding to 76.4% and 100.0% of Fibonacci. After it the ascending wave of a new uptrend may start its development; it may raise quotes to 1.2861 and 1.2899, which is corresponding to 88.6% and 76.4% of Fibonacci. The developing channel keeps the outlook of the downtrend. MACD has not formed divergences/convergences.