The correction from 137.97 has extended, but as long as important resistance at 140.08 stays untouched, we will continue to regard this rally as an correction. In the short term we will be looking for a break below support at 139.49 as the first good indication, that the correction is over, while a break below support at 139.07 confirms that a new impulsive decline is building for a decline to 137.97 on the way lower to 137.21 and likely even 136.56 as the next major downside targets.
If however, important resistance at 140.08 is broken, then we will be forced to change our immediately bearish count to a B-wave triangle consolidation.
Trading recommendation:
Our stop at 139.90 was hit and we will sell EUR upon a break below support at 139.49 with a stop at 140.15.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 141.55
R2: 140.94
R1: 140.08
Current spot: 139.68
S1: 139.49
S2: 139.07
S3: 138.68
Technical summary:
The correction from 137.97 has extended, but as long as important resistance at 140.08 stays untouched, we will continue to regard this rally as an correction. In the short term we will be looking for a break below support at 139.49 as the first good indication, that the correction is over, while a break below support at 139.07 confirms that a new impulsive decline is building for a decline to 137.97 on the way lower to 137.21 and likely even 136.56 as the next major downside targets.
If however, important resistance at 140.08 is broken, then we will be forced to change our immediately bearish count to a B-wave triangle consolidation.
Trading recommendation:
Our stop at 139.90 was hit and we will sell EUR upon a break below support at 139.49 with a stop at 140.15.
The material has been provided by InstaForex Company – www.instaforex.com
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