The deep correction has forced us to change our count. Instead of a series of waves one’s and two’s the rally from 1.5261 has been a leading diagonal. This type of impulsive, is the only one that allows overlapping waves and still is impulsive. That means, that we currently are in red wave ii, which we expect will terminate in the 1.5466 – 1.5532 area, from where the powerful red wave iii is expected. In the short term we will be looking for a move higher towards the 1.5667 – 1.5696 area from where we expect one more decline down to the 1.5466 – 1.5532 area, with 1.5466 as the most likely target, before red wave iii takes over.
Trading recommendation:
Our stop at 1.5645 was hit and left us with a nice little profit. We are looking for a new EUR buying opportunity at 1.5475. If you are an aggresive day-trader you should sell EUR near 1.5667 with a stop at 1.5775 and take profit + revers your position at 1.5475.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 1.5681
R2: 1.5658
R1: 1.5595
Current Spot: 1.5604
S1: 1.5576
S2: 1.5532
S3: 1.5485
Technical overview:
The deep correction has forced us to change our count. Instead of a series of waves one’s and two’s the rally from 1.5261 has been a leading diagonal. This type of impulsive, is the only one that allows overlapping waves and still is impulsive. That means, that we currently are in red wave ii, which we expect will terminate in the 1.5466 – 1.5532 area, from where the powerful red wave iii is expected. In the short term we will be looking for a move higher towards the 1.5667 – 1.5696 area from where we expect one more decline down to the 1.5466 – 1.5532 area, with 1.5466 as the most likely target, before red wave iii takes over.
Trading recommendation:
Our stop at 1.5645 was hit and left us with a nice little profit. We are looking for a new EUR buying opportunity at 1.5475. If you are an aggresive day-trader you should sell EUR near 1.5667 with a stop at 1.5775 and take profit + revers your position at 1.5475.
The material has been provided by InstaForex Company – www.instaforex.com
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