Analysis of wave counting:
During the Wednesday trading, the EUR / USD currency pair lost about 20 percentage points. However, the losses continued later, and the pair made a successful attempt to break through the lower line forming the upward corridor. This moment suggests the conclusion about the pair's readiness to build a downward wave, presumably 4 in the uptrend of the trend. If this assumption is true, the decline in quotations will continue with targets located near the levels of 50.0% and 61.8% on the Fibonacci grid, built on the size of the estimated wave 3.
The objectives for the option with sales:
1.1670 - 50.0% of Fibonacci
1.1636 - 61.8% of Fibonacci
The objectives for the option with purchases:
1.1813 - 0.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair supposedly completed the construction of wave 3. Thus, now I recommend selling the pair in small volumes with targets located near the marks of 1.1670 and 1.1636. An unsuccessful attempt to break through one of these marks can lead to the completion of wave 4 construction. However, this wave may take a more complex 3-waveform.
The material has been provided by InstaForex Company - www.instaforex.com