Wave analysis of EUR/USD for August 22. The euro has the potential growth in the area of 18 figures

analytics5b7d11351fdf0.png

Analysis of wave counting:

During the trading session on Tuesday, the EUR/USD currency pair gained another 90 bp. Thus, the construction of the first wave in the future wave and the correction section of the trend continues its formation. An unsuccessful attempt to break through the 61.8% Fibonacci level can lead to the withdrawal of quotations from the achieved highs and the beginning of the construction of the correctional wave 2, or b. The break of the lows of August 15 will lead to the complication of the downward trend section.

Targets for selling:

1.1301 - 0.0% Fibonacci retracement

Targets for buying:

1.1575 - 61.8% Fibonacci retracement

1.1640 - 76.4% Fibonacci retracement

1.1747 - 100.0% Fibonacci retracement

General conclusions and trading recommendations:

The pair has supposedly completed the construction of the downward trend section. If this is the case, the increase in quotations will continue with the targets near the estimated levels of 1.1575, 1.1640 and 1.1747, which corresponds to 61.8%, 76.4% and 100.0% Fibonacci. Hence, it is recommended to buy the pair and selling should not be made prior receiving a signal about the resumption of the downward trend. For example, a successful attempt to break through the mark of 1.1301 is equivalent to 0.0% of Fibonacci.

* The presented market analysis is informative and does not constitute a guide to the transaction.

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