Wave summary:
Red wave [ii] did turn into the expanded flat correction we warned about yesterday. With red wave [ii] complete at 113.70, we should expect a strong impulsive rally in red wave [iii], that is expected to extend higher to at least 118.71 with 122.00 as the next major upside target.
Short-term, we expect minor support at 114.07 will be able to protect the downside for the next rally above 115.40 and more importantly above 116.02 confirming the rally higher to 118.71.
Trading recommendation:
Our stop at 113.90 was hit. We will re-buy EUR upon a break above 115.04 and place stop below 113.65.
The material has been provided by InstaForex Company - www.instaforex.com