Technical summary:
An expected correction in wave ii is unfolding and we will be looking for a correction lower to 1.5500 and maybe even lower to 1.5290. But we have to consider that we are in wave three higher and the correction tends to be small or even abnormal. So, we cannot expect too much of this correction.
In the short term, we expected minor resistance at 1.5798 to be able to protect the upside for a decline closer to 1.5500. A break above minor resistance at 1.5798 will be the first indication that wave ii is over and a new impulsive rally higher is developing. A break above 1.5833 is needed for a rally to 1.6456 (as the next major upside target) to confirm that wave iii is unfolding.
Trading recommendation:
We will buy EUR at 1.5525 or upon a break above minor resistance at 1.5798 with a stop placed 1.5200 expected to be able to raise the stop quickly.
The material has been provided by InstaForex Company - www.instaforex.com