Wave analysis of EUR / USD for February 26. The euro is trading in a narrow price range.

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Wave counting analysis:

On Monday, February 25, trading ended for EUR / USD by an increase of 20 basis points, but it was not possible to get beyond the maximum of the expected wave 4. Thus, there is still reason to assume that wave 4 is complete. However, I recommend not to hurry to start sales without confirming the development of this option. There is an option in which a successful attempt to break through the 50.0% level along the small Fibonacci grid will lead to a lengthening of wave 4, which can still be completely transformed into a wave a of the new uptrend. Today in the US Congress will be the speech of Fed Chairman Jerome Powell, and the movement of the pair after it will depend on the nature of its rhetoric.

The objectives for the option with sales:

1.1228 - 0.0% of Fibonacci

1.1215 - 0.0% of Fibonacci

The objectives for the option with purchases:

1.1356 - 23.6% of Fibonacci

1.1408 - 61.8% of Fibonacci

General conclusions and trading recommendations:

The pair supposedly completed building wave 4. Thus, if the level of 23.6% holds, then I recommend selling the pair to build wave 5 of the downtrend with targets located near the calculated levels of 1.1228 and 1.1215 and below. A successful attempt to break through the 50.0% level will indicate that the pair is ready to continue building the upward wave. In this case, you can buy a pair with a target of 1.1408.

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

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