Wave analysis of EUR / USD for August 2. The pair remains inside the narrowing corridor. A breakthrough is approaching
Analysis of wave counting:
During the trades on Wednesday, the currency pair EUR / USD fell by 30 percentage points, to the lower forming a tapering corridor of the line. Most likely, today, we are expected to test this line for strength and with a high probability of a breakthrough. If this assumption is true, then the pair will proceed to build the bearish wave 5 of the main trend. A failed attempt to break this line can throw the pair back to the top line. However, in any case, the moment of the pair’s exit from the corridor is coming, after which we will learn the approximate trend for the coming days and weeks.
The objectives for the option with sales:
1.1507 – 100.0% of Fibonacci
1.1444 – 127.2% of Fibonacci
The objectives for the option with purchases:
1.1834 – 200.0% of Fibonacci
1.1957 – 161.8% of Fibonacci
General conclusions and trading recommendations:
The correction wave 4 still looks fully staffed, and there are no prerequisites for its complication now. Several attempts to break the top line of the corridor failed, so now I recommend to continue to form sales with the targets of 1.1507 and 1.1444, which is equivalent to 100.0% and 127.2% of Fibonacci, built on the size of wave 4. I recommend that you go back to shopping after the breakthrough of the maximum expected wave 4.