Wave counting analysis:
In the course of trading on Tuesday, the EUR / USD currency pair gained about 80 basis points. Thus, there are reasons to assume the completion of the construction of the expected wave 5 of the downward trend section. It should be clarified that wave 5 can take the 5th wave view and, accordingly, will greatly complicate its internal wave structure. However, much will now depend on the situation on Brexit and the final result on the negotiations between Britain and the European Union. An unsuccessful attempt to break through the level of 100.0% may lead to a new drop in the instrument quotations.
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 either the first wave 5, or the whole wave 5. An unsuccessful attempt to break through will support the first option, and the pair, in this case, will resume falling. Thus, in the performance of this condition, I will recommend selling the pair again, based on the complication of wave 5 with targets located near the calculated levels of 1.1179 and 1.1103.
The material has been provided by InstaForex Company -
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