Wave summary:
The correction from 122.95 has extended and is currently testing the 78.6% corrective target near 121.02. Ideally this support will be able to protect the downside for a break above minor resistance at 122.15 and more importantly above resistance at 122.95 for the next rally higher toward the ideal target for wave 3 at 125.54.
That said, we need to remember, that second wave corrections are allowed to correct 100% of the first wave, but they can never ever move beyond the start of the first wave.
R3: 122.95
R2: 122.15
R1: 121.61
Pivot: 121.48
S1: 121.02
S2: 120.88
S3: 120.50
Trading recommendation:
We are long EUR from 121,40 with stop placed at 120,45. If you are not long EUR yet, then buy a break above 122.15 and use the same stop at 120.45.
The material has been provided by InstaForex Company - www.instaforex.com