Analysis of wave counting:
During the trades on Thursday, the currency pair EUR / USD lost another 100 percentage points. Thus, the pair continues to build the proposed wave 4 of the upward trend section. An unsuccessful attempt to break the level of 61.8% by Fibonacci can lead to the withdrawal of quotations from the reached lows and the completion of the construction of the entire wave. The same effect can be obtained from a rebound from the level of 76.4%. An alternative option is to further reduce the pair, which will lead to the construction of a new downward trend segment. Thus, to resume purchases, you need confirmation of the completion of wave 4.
The objectives for the option with sales:
1.1636 - 61.8% of Fibonacci
1.1594 - 76.4% of Fibonacci
The objectives for the option with purchases:
1.1813 - 0.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair continues to build wave 4 with targets near the estimated levels of 1.1636 and 1.1594. Thus, I recommend selling a pair with these goals, around which you will need to look at whether there will be a breakthrough. A rebound from any of these levels may mean the end of the wave 4 construction and the pair's transition to wave 5 construction with the first goal located near the 0.0% Fibonacci level.
The material has been provided by InstaForex Company -
www.instaforex.com