The failure to extend the rally beyond 1.6020 does imply that an alternate count is unfolding. This count is even more bullish than our previous count, but it does call for a set-back to 1.5644 before higher again. If this count is correct that will most likely propel us right through resistance at 1.6655 for a continuation higher towards at least 1.7196 and possibly even closer to 1.7564, but it all depends on whether a decline to 1.5644 is seen before the next rally higher.
If a direct break above minor resistance at 1.5958 and more importantly a break above resistance at 1.6020 is seen, then we should continue to keep an eye on the former 1.6655 target.
R3: 1.6172
R2: 1.6072
R1: 1.6021
Pivot: 1.5850
S1: 1.5792
S2: 1.5747
S3: 1.5644
Trading recommendation:
We are long EUR from 1.5940. We will take our stop here at 1.5850 for a small loss and place a new EUR-buy order at 1.5665 or upon a direct break above 1.6020.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Wave summary:
The failure to extend the rally beyond 1.6020 does imply that an alternate count is unfolding. This count is even more bullish than our previous count, but it does call for a set-back to 1.5644 before higher again. If this count is correct that will most likely propel us right through resistance at 1.6655 for a continuation higher towards at least 1.7196 and possibly even closer to 1.7564, but it all depends on whether a decline to 1.5644 is seen before the next rally higher.
If a direct break above minor resistance at 1.5958 and more importantly a break above resistance at 1.6020 is seen, then we should continue to keep an eye on the former 1.6655 target.
R3: 1.6172
R2: 1.6072
R1: 1.6021
Pivot: 1.5850
S1: 1.5792
S2: 1.5747
S3: 1.5644
Trading recommendation:
We are long EUR from 1.5940. We will take our stop here at 1.5850 for a small loss and place a new EUR-buy order at 1.5665 or upon a direct break above 1.6020.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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