The expected correction in black wave iv is unfolding. We have already seen a break below the 23.6% corrective target at 122.28. It indicates a decline to the 38.2% corrective target at 120.96. The expected decline is unlikely to be in a straight line but we should rather expect a new rally towards the peak at 124.43 before another decline to the ideal target at 120.96.
Looking at the RSI indicator, we need a break below index 39.82 before wave iv/ is completed and wave v/ rises to 125.77.
R3: 122.90
R2: 122.60
R1: 122.17
Pivot: 121.85
S1: 121.46
S2: 121.25
S3: 120.96
Trading recommendation:
We took profit on our short-position from 124.20 at 122.35 and book a nice 185 pips. We will re-buy EUR here at 121.85 and place our stop at 120.85.
The material has been provided by InstaForex Company - www.instaforex.com