Wave analysis of EUR / USD for January 29

Wave counting analysis:

On Monday, January 28, trading ended for EUR / USD by another 25 bp increase. Thus, the expected wave 2 in the composition of the supposedly new downward trend section continues its construction. An unsuccessful attempt to break through the level of 38.2% on the older grid, or 61.8% on the youngest, will indicate that the pair is ready to build a third downward wave with targets located below figure 13 There are still doubts about the ability of the instrument for this option, since we need a strong news background for the new pair reduction.

Sales targets:

1,1289 – 0.0% Fibonacci

1.1215 – 0.0% Fibonacci

Shopping goals:

1.1444 – 38.2% Fibonacci

1.1462 – 61.8% Fibonacci

General conclusions and trading recommendations:

The pair continues to build a correctional wave 2. Thus, its completion should lead to a resumption of the decline with targets located near the calculated levels of 1.1289 and 1.1215, which equates to 0.0% and 0.0% Fibonacci. Now I recommend cautious sales of the pair with designated targets and orders limiting possible losses above the level of 38.2% on the older Fibonacci grid.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Wave analysis of EUR / USD for January 29. New downtrend?