Technical summary:
The break below support at 1.4368 was unexpected; and it changes at least the short-term outlook for this cross. The rally of the low of 1.4128 could be described as a leading diagonal and if this is the case, support should soon be found for a break above minor resistance at 1.4461 and, more importantly, a break above resistance at 1.4547 confirming renewed upside pressure. However, the risk is a break below the 1.4128 bottom, that will call for a recount of the decline from 1.5821 and a move closer to 1.4048 before the bottom will be, most likely, in place.
Trading recommendation:
Our stop at 1.4355 was hit for a little but nice profit. We will only buy EUR at a break above 1.4461 (say at 1.4470).
The material has been provided by InstaForex Company - www.instaforex.com
