Wave summary:
We saw the expected decline to the 61.8% corrective target at 116.52 (the low was seen at 116.42) from where a new very strong rally was seen. The rally from 116.42 does not resemble a fifth wave rally but is more in accordance with a third wave rally, so we have changed our count to fit this view calling for more upside closer to 120.62 and possibly even higher towards 121.92 before wave iii/ peaks. Support is now seen at 118.73, which is expected to hold for the expected push higher towards at least 120.62.
R3: 121.92
R2: 120.62
R1: 120.16
Pivot: 120.00
S1: 119.28
S2: 118.73
S3: 118.29
Trading recommendation:
We are long EUR from 115.25 and will move our stop higher to 116.40. If you are not long EUR yet, then buy near 118.73 and use the same stop at 116.40.
The material has been provided by InstaForex Company - www.instaforex.com