Wave counting analysis:
On Thursday, January 31, trading ended with a 30 bp decline for the EUR / USD pair. Thus, the estimated wave 2 can be completed. If this assumption is true, then the decline of the instrument will continue within wave 3 with targets located about 13 figures and below. Even if the current wave counting is transformed into a three-wave one, the increase in quotations should not be higher than the maximum of wave c, after which, in any case, a descending wave with targets around 13 figures is expected. The unsuccessful attempt to break through the levels of 76.4% and 50.0% according to Fibonacci indirectly indicates the pair's readiness to decline.
Sales targets:
1,1289 - 0.0% Fibonacci
1.1215 - 0.0% Fibonacci
Shopping goals:
1.1502 - 76.4% Fibonacci
1.1569 - 100.0% Fibonacci
General conclusions and trading recommendations:
The pair supposedly completed the construction of the correctional wave 2. Thus, now I expect the tool to continue to decline with targets located near the marks of 1,1289 and 1.1215, which equates to 0.0% and 0.0% Fibonacci. The backup option provides for the complication of the upward wave of January 24, but the probability of this option is now extremely low.
The material has been provided by InstaForex Company -
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