Technical summary:
Support at 1.6028 held perfect for the next attack on the resistance line. As expected, it broke for a rally higher towards 1.6273, but suddenly near 1.6200 prices ran into a brick wall and took an awful dive. Should we be afraid? When prices collapse like this, we should always be careful, but we regard this decline as wave ii and will be looking for wave iii higher to at least 1.6526, where wave iii will be 161.8% of wave i. In the short term, only a break below 1.5789 will invalidate the bullish outlook.
Trading recommendation:
Our stop at 1.6010 was hit for a nice profit. We will buy EUR again at 1.5915 or upon a break above 1.5984 with a stop at 1.5775.
The material has been provided by InstaForex Company - www.instaforex.com
