Technical summary:
A break below support at 1.7426 decided that the small triangle was a b-wave triangle and more downside action was to be expected. That also means that wave (iii) ended with a spike towards 1.9023 and wave (iv) now is unfolding towards 1.6599 as an ideal target. We will not alone find the 50% corrective target of wave (iii) at 1.6599, but it's also close to the bottom of wave iv of one lessor degree, which is a very common target for wave four correction of one larger degree.
Ideal resistance at 1.7524 will protect the upside in order to continue lower to 1.6599.
Trading recommendation:
We sold EUR at 1.7425 and will place our stop at 1.7650 and take profit will be placed at 1.6625.
The material has been provided by InstaForex Company - www.instaforex.com