Wave Analysis:

Yesterday a breakthrough of figure 29 led to the EUR/USD pair reversed decisively to the level of 1.2850. Meanwhile, despite the correctional level of 50.0% does not look worked out, there is a possibility that the uptrend that was formed during the second half of the day will transform into the beginning of the third. At the same time it is not ruled out that wave 4 (in C or 3) may take a more complex inner wave structure resembling an ascending triangle.

Targets for Down Wave 4 in 3 or C (presumably):

1.2874 – 50.0% of Fibonacci
1.2842 – 61.8% of Fibonacci

Targets for Up Wave 5 in 3 or C:

1.3011 and higher – 200.0% of Fibonacci

Summary and Trading Recommendations:

Up wave 3 or C (presumably) of an uptrend continues its building. In terms of wave 5 in 3 or C growth of quotes may continue towards the level of 1.3011 and higher which is corresponding 200.0% of Fibonacci. Before this wave starts its formation the descending movement may continue with the targets 1.2874 and 1.2842 which is corresponding to 50.0% and 61.8% of Fibonacci in terms of wave 4 in 3 or C of an uptrend. A small Divergence of MACD warned about the beginning of a corrective wave 4 in terms of uptrend formation. The whole wave 3 or C may finish near the figure 31. No channels or Divergence/Convergence had been observed for the previous day.