The deep correction from 132.78 indicates that wave iii of 5 ended early and that wave iv of 5 is ongoing. Wave iv of 5 could already have ended at 131.18, which a break above 131.91 will confirm. However, until we have a clear break above 131.91, we must accept that wave iv could retrace a little more of wave iii, with a deeper correction down to 130.88 and maybe 130.43 (unlikely), before wave v of 5 takes over. As wave iii ended a little early (below our ideal target at 133.59), we should expect wave v to end a little lower too. Wave v should as a minimum reach 133.20, but it is more likely that we will see top at 134.47.
Trading recommendation:
Our stop at 131.30 was hit for a nice porfit. We will buy EUR again here at 131.55 with a stop at 130.25 and take profit + reversal of the position at 134.20.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s support and resistance levels:
R3: 132.78
R2: 132.45
R1: 131.91
Current spot: 131.55
S1: 131.18
S2: 130.88
S3: 130.43
Technical overview:
The deep correction from 132.78 indicates that wave iii of 5 ended early and that wave iv of 5 is ongoing. Wave iv of 5 could already have ended at 131.18, which a break above 131.91 will confirm. However, until we have a clear break above 131.91, we must accept that wave iv could retrace a little more of wave iii, with a deeper correction down to 130.88 and maybe 130.43 (unlikely), before wave v of 5 takes over. As wave iii ended a little early (below our ideal target at 133.59), we should expect wave v to end a little lower too. Wave v should as a minimum reach 133.20, but it is more likely that we will see top at 134.47.
Trading recommendation:
Our stop at 131.30 was hit for a nice porfit. We will buy EUR again here at 131.55 with a stop at 130.25 and take profit + reversal of the position at 134.20.
The material has been provided by InstaForex Company – www.instaforex.com
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