Technical summary:
The correction in red wave iv became a little higher than expected, but is still holding below important short-term resistance at 129.06. Look for red wave v lower towards 125.98 soon. In the short term, a break below minor support at 128.09 and a more important break below support at 127.28 is likely to confirm a decline to 125.98. Now, we are in the final parts of wave C decline of the major expanded flat correction, which has been developing for the last three months. When this correction is over, we will be looking for a new impulsive rally higher. But for now, we still have to focus on the downside and look for signs that the bottom could be in place.
Trading recommendation:
We are short EUR from 133.90 with stop place at 129.10. We will keep our take profit at 126.25. This is very late in the downtrend, but a quick short here at 128.21 with a stop at 129.10 and take profit at 126.25 should still make a nice risk reward.
The material has been provided by InstaForex Company - www.instaforex.com
