Wave analysis of the EUR / USD currency pair for May 18, 2018

Analysis of wave counting:

After falling to 1.1760 the previous day, during the yesterday's trading, the currency pair EUR / USD took a pause and spent the whole past day in the range near the level of the 18th figure. In this case, the wave c, c, b, (C) has retained the form of a completely completed five-wave structure. If this is the case, then from the low already reached on Wednesday, the currency pair can execute a turn against the dollar and resume the formation of the main upward trend. At the same time, the probability of even more complicating the internal wave structure of the entire wave c, c, c, c, (C) still persists, with the prospect of lowering the quotations at least to the level of 1.1675.

The objectives for the option with sales:

1.1674 - 200.0% of Fibonacci

1.1600

The objectives for the option with purchases:

1.2000 - 1.2200

General conclusions and trading recommendations:

The assumed wave c, B, (C) continues its construction and may become even more complicated. Thus, I recommend selling the pair with targets located near the calculated mark of 1.1674, which corresponds to 200.0% of Fibonacci. The divergence of the MACD warns of the readiness of the instrument to move away from the reached minimum, possibly within the framework of the beginning of the wave d, B, (C).