Wave summary:
We have seen nice small five-wave rally up from the 118.19, which we count as a minor wave i and wave ii is currently unfolding for a corrective decline towards 119.97 before higher in wave iii towards 123.31 and possibly even above.
In the short term a break above minor resistance seen at 120.86 will be an indication that wave ii has completed and wave iii higher is unfolding. Even if support at 119.97 should be broken, that will extend the correction in wave ii closer to 119.30, but the overall count remains the same, calling for more upside pressure soon.
R3: 122.52
R2: 121.76
R1: 121.28
Pivot: 120.50
S1: 120.25
S2: 119.97
S3: 119.47
Trading recommendation:
We are long EUR from 119.86 with stop placed at 118.60. If you are not long EUR yet, then buy near 119.97 or upon a break above 120.86 and use the same stop at 118.60.
The material has been provided by InstaForex Company - www.instaforex.com