Yesterday, we saw something like a roller coaster ride. Important short-term resistance at 1.6112 was broken. That could indicate that we saw a fifth wave failure at 1.5869. The fifth wave failures are especially difficult to handle, because you can not know for sure if it was a fifth wave failure before the previous wave four is exceeded, which in this case will be a break above resistance at 1.6285. However, we will get a good indication if we were able to see a break above resistance at 1.6202, but we have not seen that yet. So, both possibilities are open.
A break below 1.5869 is needed to dismiss the fifth wave failure, for a continuation lower towards 1.5765 and possibly lower towards 1.5653. No matter what we are doing right now, the stop will be far away.
Trading Recommendation:
Our stop and reverse was hit at 1.6125. We will place our stop at 1.5865. If you have no position at this time only buy EUR upon a break above 1.6202.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance Levels:
R3: 1.6178
R2: 1.6058
R1: 1.6028
Current Spot: 1.5999
S1: 1.5980
S2: 1.5960
S3: 1.5935
Technical Summary:
Yesterday, we saw something like a roller coaster ride. Important short-term resistance at 1.6112 was broken. That could indicate that we saw a fifth wave failure at 1.5869. The fifth wave failures are especially difficult to handle, because you can not know for sure if it was a fifth wave failure before the previous wave four is exceeded, which in this case will be a break above resistance at 1.6285. However, we will get a good indication if we were able to see a break above resistance at 1.6202, but we have not seen that yet. So, both possibilities are open.
A break below 1.5869 is needed to dismiss the fifth wave failure, for a continuation lower towards 1.5765 and possibly lower towards 1.5653. No matter what we are doing right now, the stop will be far away.
Trading Recommendation:
Our stop and reverse was hit at 1.6125. We will place our stop at 1.5865. If you have no position at this time only buy EUR upon a break above 1.6202.
The material has been provided by InstaForex Company – www.instaforex.com
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