Wave counting analysis:
On Wednesday, February 27, trading ended for EUR / USD by a 20 bp decline. Thus, there appeared another reason to assume that the construction of the upward wave was completed, which is now identified as 4. The instrument did not reach the Fibonacci level of 61.8% in just a few bp. If the current wave counting is correct, then a new decline may begin from the current positions within the fifth wave of the downtrend trend with targets located about 12 figures. However, the news background is now absolutely neutral and does not support any of the currencies, which makes it difficult not only to fall, which is logical for the wave pattern, but also a possible increase in quotations.
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 still waiting for a new signal about the completion of the upward wave to open sales of the pair with targets located near the minimum of the supposed wave 3. The empty news calendar is now an obstacle to movement in any direction. As a result, the wave pattern may require certain adjustments.The material has been provided by InstaForex Company - www.instaforex.com