We have seen the expected break below support at 138.56 confirming that blue wave v lower is developing. Even though we are looking for a move closer to 137.69, caution should be warranted here, as this will be the last wave to finish red wave iii and will be followed by a correction towards at least 139.03 and maybe even closer to 139.36 before lower in red wave v.
As long as minor resistance at 138.45 protects the upside, we will be looking for a move closer to 137.69, but from 137.69 or upon a break above 138.45, the short-term risk will be towards the upside for a correction.
Trading recommendation:
We are short in EUR from 138.73 and will move our stop lower to 138.45 and place take profit at 137.80.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 139.36
R2: 138.81
R1: 138.50
Current spot: 138.09
S1: 137,69
S2: 137.20
S3: 136.67
Technical summary:
We have seen the expected break below support at 138.56 confirming that blue wave v lower is developing. Even though we are looking for a move closer to 137.69, caution should be warranted here, as this will be the last wave to finish red wave iii and will be followed by a correction towards at least 139.03 and maybe even closer to 139.36 before lower in red wave v.
As long as minor resistance at 138.45 protects the upside, we will be looking for a move closer to 137.69, but from 137.69 or upon a break above 138.45, the short-term risk will be towards the upside for a correction.
Trading recommendation:
We are short in EUR from 138.73 and will move our stop lower to 138.45 and place take profit at 137.80.
The material has been provided by InstaForex Company – www.instaforex.com
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