Wave summary:
The corrective rally in wave [iv] from 126.14 continues to unfold as we expected. It looks as if wave c of [iv] turns into a small ending diagonal, which means the final rally higher towards 129.07 is likely to be a little slower than we first anticipated, but nothing else has changed.
Short-term support is found at 128.23 and again at 128.05. It is expected to protect the downside for the next part of wave c higher towards 129.07.
Only an unexpected breakout below support at 127.77 will indicate that the corrective rally in wave [iv] has already ended and a new impulsive decline in wave [v] lower to 123.89 is developing.
Trading recommendation:
We will sell EUR at 129.00 or upon the breakout below the important short-term support of 127.77.
The material has been provided by InstaForex Company - www.instaforex.com