Wave summary:
A test of the pitchfork resistance-line near 121.95 is now being seen. This is close to the (iv) top at 122.00 seen on June 23. Ideally a small spike just above 122.00 will be seen, but we have entered an area, from where a wave (iv) correction towards at least 119.76 and more likely closer to the 38.2% corrective target at 118.39 could be seen anytime now.
We are only looking for a correction in wave (iv). As the correction in wave (ii) was a simple zig-zag, wave (iv) should turn into some kind of flat correction or a triangle consolidation giving us more of a sideways trading area.
Trading recommendation:
We are short EUR from 121.85 with stop placed at 122.85. If you are not short EUR yet, then sell near 122.00 or upon a break below 121.54 and use the same stop at 122.85.
The material has been provided by InstaForex Company - www.instaforex.com