Wave summary:
Our preferred count remains that an ending diagonal completed with the 120.80 low. The rally of the 120.80 low to 122.70 is counted as the first minor impulsive rally (wave [i]) and the decline to 121.30 as wave [ii]), and we are now looking for a break above minor resistance at 121.98 and, more importantly, above resistance at 122.70 as a confirmation that wave [iii] higher towards 124.36 is developing. A rally above the ending diagonal resistance line near 123.50 will confirm a return to the origin of the ending diagonal at 128.22.
Only an unexpected break below 120.80 will indicate that the ending diagonal is not yet complete, but the downside potential is very limited.
Trading recommendation:
We are long in EUR from 121.70 with stop placed at 120.75. If you are not long in EUR yet, then buy a break above 121.98 and use the same stop at 120.75.
The material has been provided by InstaForex Company - www.instaforex.com