Analysis of wave counting:
During the trades on Tuesday, the currency pair EUR / USD lost another 65 percentage points. Thus, wave 3, 5, continues its construction and can turn out to be very long. If that assumption is true, then the entire wave 5 can also take a very complex and extended form. The closest target is the Fibonacci level of 200.0%. An unsuccessful attempt to break through the 200.0% mark may lead to a small withdrawal of quotations from the minimum reached while maintaining a high probability of execution of the working variant.
The objectives for the option with sales:
1.1272 - 200.0% of Fibonacci
1.1125 - 261.8% 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 pair continues to build a bearish set of waves. Thus, I recommend that the pair stays in sales with targets located near the calculated marks of 1.1272 and 1.1125, which corresponds to 200.0% and 261.8% of Fibonacci. We do not have to return to the purchases of the bases right now, since wave 3, 5, does not look complete, and the entire descending section of the trend can turn out to be very long.
The material has been provided by InstaForex Company - www.instaforex.com