Wave counting analysis:
In the course of trading on Monday, the EUR / USD currency pair lost another 110 basis points more. Thus, the conclusions remain the same, the construction of the supposed wave 5 of the downward trend section with the targets located near the 161.8% and 200.0% of Fibonacci levels continues. An unsuccessful attempt to break through the level of 161.8% can lead to the completion of the construction of the entire downward trend segment.
The objectives for the option with sales:
1.1179 - 161.8% of Fibonacci
1.1103 - 200.0% of Fibonacci
The objectives for the option with purchases:
1.1499 - 0.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair completed the construction of the fourth wave of the downward trend. Thus, now I recommend to continue selling the pair with targets located near the estimated marks of 1.1179 and 1.1103, which corresponds to 161.8% and 200.0% of Fibonacci, since wave 5 still does not look complete. An unsuccessful attempt to break the mark of 1.1103 or close above 1.1248 (127.2% Fibonacci) could be grounds for waiting for the construction of an upward wave.
The material has been provided by InstaForex Company -
www.instaforex.com