Wave summary:
With a low seen at 122.19 (just 7 pips from the ideal downside target at 122.12) followed by a clear break above minor resistance at 123.12, wave [ii] was completed and wave [iii] moved higher towards at least 127.34.
Short-term support is now at 123.12 with back-up support formed at 122.75, but we doubt that the 123.12 support level will be broken .
In a long-term prospective we are looking for a return to 141.06. Besides, we expect confirmation of a rally towards 149.56 and development of the next impulsive rally.
Trading recommendation:
We are long on the EUR from 122.80 and will move our stop higher to 122.15. If you are not long on the EUR yet, then buy near 123.12 or upon a break above 124.05 and use the same stop at 122.15.
The material has been provided by InstaForex Company - www.instaforex.com