Wave summary:
The break below important support at 130.12 is very frustrating and has forced us back to the drawing broad. We still think that the decline from 140.73 is quite messy, but our new preferred count shows that a possible new zig-zag combination is unfolding. We are currently in wave (iii) of wave A which is expected to reach 123.57 before a larger correction in wave B is seen.
In the short term, we will ideally see minor resistance at 132.50 protect the upside for the next part of the decline towards 125.34. It will take a break above resistance at 133.22 to question this count.
Trading recommendation:
Our stop at 130.10 was hit for a very small loss. We are looking to sell EUR near 132.50 with stop placed at 133.30.
The material has been provided by InstaForex Company - www.instaforex.com