The strong acceleration lower we have seen over the last couple of days clearly indicates that we are in a wave three lower. As can be seen on the chart we are acturally looking at a series of wave one’s and two’s and a series of wave three’s is ongoing. For blue wave iii we will be looking for a target at 1.5694, while the target for red wave iii comes in at 1.5533, so we should see more downside action from here. However, we should expect some corrections under the way lower and currently we meeting some strong trendline support, which could cause a sideways consolidation/correction.
Trading recommendation:
Stay short from 1.5925 and lower your stop to 1.5865. If our stop is hit, we will sell EUR again 1.5905 with a stop at 1.6000.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 1.5935
R2: 1.5908
R1: 1.5864
Current spot: 1.5813
S1: 1.5770
S2: 1.5694
S3: 1.5617
Technical summary:
The strong acceleration lower we have seen over the last couple of days clearly indicates that we are in a wave three lower. As can be seen on the chart we are acturally looking at a series of wave one’s and two’s and a series of wave three’s is ongoing. For blue wave iii we will be looking for a target at 1.5694, while the target for red wave iii comes in at 1.5533, so we should see more downside action from here. However, we should expect some corrections under the way lower and currently we meeting some strong trendline support, which could cause a sideways consolidation/correction.
Trading recommendation:
Stay short from 1.5925 and lower your stop to 1.5865. If our stop is hit, we will sell EUR again 1.5905 with a stop at 1.6000.
The material has been provided by InstaForex Company – www.instaforex.com
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