The corrective decline in wave iv continued lower to the 61.8% corrective target at 0.8747 as expected. This likely marks the completion of wave iv, but we need a break above minor resistance at 0.8818 and more importantly a break above resistance at 0.8867 to confirm that wave iv has completed and wave v towards our ideal target at 0.9742 is developing.
As long as minor resistance at 0.8818 is able to cap the upside, we still could see a final spike to just below 0.8747, but the downside should be very limited from here.
R3: 0.8867
R2: 0.8818
R1: 0.8784
Pivot: 0.8773
S1: 0.8747
S2: 0.8715
S3: 0.8682
Trading recommendation:
We bought EUR at 0.8760 and we have placed our stop at 0.8700.
The material has been provided by InstaForex Company - www.instaforex.com