Analysis of wave counting:
During the trades on Thursday, the currency pair EUR / USD gained about 70 percentage points from the day's low. Thus, the assumed wave 3, 5, assumes a slightly more complicated form than was originally intended, nevertheless continues its construction. The wave 4 of the trend's downward part can theoretically take the 5-wave form of the convergent triangle. However, after completion of the construction of even 5 internal waves, a downward wave 5 should be built. Thus, based on the current wave counting, in the perspective of the next month or two, the euro has only one option, a further decline either directly from the current position or after the wave e, 4, is constructed if the transformation does happen.
The objectives for the option with sales:
1.1510 - 100.0% of Fibonacci
1.1433 - 127.2% of Fibonacci
The objectives for the option with purchases:
1.1866 - 100.0% of Fibonacci
1.2072 - 127.2% of Fibonacci
General conclusions and trading recommendations:
Ascending correction wave 2, 5, completed its construction. If this is the case, then the pair will resume in the coming days the decline in quotes with targets located near the estimated marks of 1.1510 and 1.1433, which is equivalent to 100.0% and 127.2% of Fibonacci. Therefore, I recommend selling a pair with these goals. Even if wave 4 takes a more complex look, it is unlikely to be able to update the maximum from July 9, below which a good opportunity for sales remains.
The material has been provided by InstaForex Company - www.instaforex.com