Wave analysis of EUR / USD for August 7. The pair is ready to proceed to construct a corrective wave

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Analysis of wave counting:

During the trades on Monday, the currency pair EUR / USD lost another 10 percentage points. Thus, the construction of the supposed first wave as part of the future wave 5 downward trend section continues. The wave 4 took a rather complex view, but still completed its construction near the mark of 1.1750. In the near future, the pair can proceed to construct an internal correctional wave in the composition of wave 1, 5, 5. The approximate targets of this wave can be located near the mark of 1.1650. After that, it is expected to resume the decline in quotations.

The objectives for the option with sales:

1.1507 - 100.0% of Fibonacci

1.1444 - 127.2% of Fibonacci

The objectives for the option with purchases:

1.1834 - 200.0% of Fibonacci

1.1957 - 161.8% of Fibonacci

General conclusions and trading recommendations:

The correction wave 4 supposedly completed its construction. If this is the case, then on August 7, I recommend continuing selling the pair with targets located near the estimated levels of 1.1507 and 1.1444, which equates to 100.0% and 127.2% of Fibonacci, within wave 1, 5. The correction wave, the construction of which is possible in the near future, can be used to increase sales at more attractive price levels.

The material has been provided by InstaForex Company - www.instaforex.com