21.08.201311:57 Forex Analysis & Reviews: Wave analysis on EUR/USD for August 21, 2013

Wave analysis:

During yesterday’s trading session the EUR/USD pair preferred to resume upward movement and at the end of the day consolidated at the level corresponding to June’s high (1.3415). Thus, yesterday’s growth confirmed the fact that the pair is forming inner wave stricture of the 5^th wave higher than the uptrend channel, starting from the high of July 9. If it is so, such a growth of the quotes may get further development towards the level of figure 36 with intermediate target near the level 1.3500.

Targets for new down wave:

1.3353 – 11.4% of Fibonacci

1.3304 – 23.6% of Fibonacci

Targets for up wave (probably 5):

1.3440 – 1.3475

Summary and trading recommendations:

The pair continues building uptrend which has transformed into 5-wave structure. Now the formation of wave 5 with targets placed in the range 1.3440–1.3475 continues. After wave 5 is completed, the pair may start building of new down trend channel with targets placed near 1.3353 and 1.3304, which is corresponding to 11.4% and 23.6% of Fibonacci. Upward channel supports perspectives of upward trend. MACD divergence warns about the readiness of the pair to build new, probably correctional trend channel.