Wave analysis of EUR / USD for July 24. Correction wave 4 is ready for completion
Analysis of wave counting:
During the trades on Monday, the currency pair EUR / USD fell by 35 percentage points. The current wave counting assumes completion of the wave formation of wave e, 4. If this is the case, then the decline in quotations will continue with targets located at least about 15 figures. The confirmation of the transition to the construction of the downward impulse wave 5 will be a successful attempt to break the lower generatrix of the tapering line of the line. The breakthrough of the upper line generates, on the contrary, the readiness of the tool to build an upward set of waves and will require the introduction of corrections to the current wave counting.
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 supposedly completed its construction. Based on this, I recommend that you continue to form sales by pair in order to build a downtrend wave 5 with the first targets located near the calculated marks of 1.1507 and 1.1444, which corresponds to 100.0% and 127.2% of Fibonacci, built on the size of the whole wave 4. The breakthrough of the rising line of the channel will allow to increase sales of the pair.