Technical summary:
Important support at 1.5789 was never in any danger of being hit as the low came in at 1.5843. The following break above 1.5981 indicates that red wave ii is over and red wave iii is developing. In the short term, we would like to see support at 1.5981 protecting the downside for a break above 1.6207 and confirming the rally higher to 1.6273 on the way higher to 1.6446 and 1.6526 in red wave iii. Only an unexpected break below 1.5872 will be of concern and endanger the important low at 1.5789.
Trading recommendation:
We are long in EUR from 1.5915 and will move our stop higher to 1.5865. If you are not long in EUR yet, then buy near 1.5981 with stop at 1.5865 too.
The material has been provided by InstaForex Company - www.instaforex.com
