Wave counting analysis:
In the course of trading on Tuesday, the EUR / USD currency pair lost another 40 percentage points more and broke through the low of the previous downward wave. Thus, the entire wave counting has suffered some refinement. The trend segment between August 15 and September 24 is now viewed as a completed 3-wave structure. If this is true, then now, the pair has moved on to building a descending at least 3-wave structure. The first wave of this structure is supposedly completed, so an increase is now expected within the wave b.
The objectives for the option with sales:
1.1526 - 127.2% of Fibonacci
1.1446 - 161.8% of Fibonacci
The objectives for the option with purchases:
1.1641 - 76.4% of Fibonacci
1.1674 - 61.8% of Fibonacci
General conclusions and trading recommendations:
The currency pair moved to build a downward trend. In general, the wave pattern is ambiguous and the entire trend section after August 15 may still take a more complex form as upward. But now, in any case, it is expected to increase either within the wave b of the new downtrend trend, or within the wave with the uptrend. Thus, I recommend buying a pair with the first targets located around 1.1641 and 1.1674, which corresponds to 76.4% and 61.8% of Fibonacci.
The material has been provided by InstaForex Company -
www.instaforex.com