Wave counting analysis:
On Tuesday, February 26, trading on EUR / USD ended with a 30 bp rise. Thus, the estimated wave 4 continued its construction and reached the level of 61.8% on the small Fibonacci grid. An unsuccessful attempt to break through this level will indicate that the pair is ready to build a downward wave with targets located about 12 figures. At the same time, the entire trend section, taking its beginning on January 10, takes the form of a triangle, so its wave 4 can turn out much deeper than it looks now. Jerome Powell said yesterday that the Fed will exercise restraint in raising the rate, as more risks and uncertainties have recently emerged. These words can support the euro.
1.1228 - 0.0% Fibonacci
1.1408 - 61.8% Fibonacci
1.1448 - 76.4% Fibonacci
General conclusions and trading recommendations:
The pair resumed building wave 4. Thus, I am waiting for a new signal for the completion of this wave. However, it should be recognized that the wave pattern is not completely unambiguous now. The current increase in quotes may well have the first wave in the new ascending three-wave structure. One way or another, the working variant is still the variant with a decline within wave 5.The material has been provided by InstaForex Company - www.instaforex.com