The rally from the 137.97 low has been slightly stronger than expected and indicates that blue wave v and red wave iii bottomed already at 137.97 and red wave iv is developing. We do expect red wave iv to reach 139.36 before turning lower in red wave v. Short-term the correction from 137.97 doesn’t look finished, but it will likely be a more complex flat consolidation as it will alternate from the simple zig-zag correction in red wave ii.
Once this correction is over we should see renewed downside pressure towards at least 137.24 and more likely even lower towards 135.94.
Trading recommendation:
Sell EUR at 139.20 with a stop at 140.20.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 139.36
R2: 139.12
R1: 138.86
Current spot: 139.01
S1: 138.66
S2: 138.42
S3: 138.07
Technical summary:
The rally from the 137.97 low has been slightly stronger than expected and indicates that blue wave v and red wave iii bottomed already at 137.97 and red wave iv is developing. We do expect red wave iv to reach 139.36 before turning lower in red wave v. Short-term the correction from 137.97 doesn’t look finished, but it will likely be a more complex flat consolidation as it will alternate from the simple zig-zag correction in red wave ii.
Once this correction is over we should see renewed downside pressure towards at least 137.24 and more likely even lower towards 135.94.
Trading recommendation:
Sell EUR at 139.20 with a stop at 140.20.
The material has been provided by InstaForex Company – www.instaforex.com
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