Wave summary:
The decline from 1.5235 continues to push lower and has tested support at 1.4750 (the low has been seen at 1.4735). It’s clear that this decline is loosing momentum, but we need a break above minor resistance at 1.4927 to ease the downside pressure or we might risk a move even closer to 1.4720 and maybe even closer to 1.4654 before the corrective low is in place. This is one of the nasty things about second waves, they are lowed to correct 100% of the first wave, but they can never ever move below the start of wave 1, so we can test 1.4654, but not break below here.
A break above minor resistance at 1.4927 will ease the downside pressure and indicate that the correction is complete, but on a break above 1.5003 will confirm the corrective low is in place for the next impulsive rally closer to 1.5837.
R3: 1.5003
R2: 1.4927
R1: 1.4872
Pivot: 1.4835
S1: 1.4780
S2: 1.4735
S3: 1.4720
Trading recommendation;
We are long EUR from 1.4886 with stop placed at 1.4650. If you are not long EUR yet, the buy a break above 1.4972 or more conservatively a break above 1.5003 and use the same stop at 1.4650.
The material has been provided by InstaForex Company – www.instaforex.com
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