Wave summary:
The rally from 118.52 busted right through resistance at 120.16 indicating that red wave v of wave (iii) was already developing. The ideal target for red wave v is seen near 122.00 where a shallow flat correction will be expected in wave (iv). The minimum target for the correction in wave (iv) is seen at 119.76, but it will be more reasonable to expected a decline to the 38.2% corrective target near 118.39, which also marks the low of red wave iv.
A short-term break below 120.81 will indicate that wave (iii) is complete and wave (iv) has taken over.
Trading recommendation:
We missed our buying opportunity and will sell EUR instead at 121.85 or at a break below 120.81 with a stop placed at 122.85.
The material has been provided by InstaForex Company - www.instaforex.com