Technical summary:
Wave v has now tested the 38.2% target at 1.5109. It seems to be peaking for a larger correction towards 1.4724. A break below minor support at 1.4932 will be the first indication that wave v and 1 has peaked and a correction in wave 2 is unfolding.
A very nice five-wave rally from the 1.3880 bottom can now be counted as wave 1. We should be looking for a correction in wave 2. Second wave corrections can be very deep (they are allowed to correct 100% of the first wave).
Trading recommendations:
We are long EUR from 1.4825 and take our profit + reverse our position to a sold EUR position here at 1.5090 with stop placed at 1.5135.
The material has been provided by InstaForex Company - www.instaforex.com