Wave summary:
A breakout above minor resistance at 130.32 confirmed that wave [iii] ended at 129.62 and wave [iv] now is unfolding. This ideal target for wave [iv] is seen at 132.50.
Wave [ii] was a simple zig-zag correction that corrected most of wave [i] so due to the alternation principle, we should expect a complex sideways correction in wave [iv].
In the short term, support at 129.98 will be ideal to protect the downside for the move closer to 132.50.
Trading recommendation:
We are long EUR from 130.08 and will move our stop higher to 129.95 and take profit at 132.25. If you are not long EUR yet, then buy near 130.30 and use the same stop and take profit levels.
The material has been provided by InstaForex Company - www.instaforex.com