Wave summary:
Important short-term resistance at 113.27 is currently being tested. A clear break above this resistance has not yet been seen, but it is expected to be seen soon. A confirmed break above 113.27 will be the first strong indication of a corrective low being in place at 112.31 for a rally back to the 118.47 high on the way higher to 122.00 and 124.55 as the next major upside targets.Support at 112.31 is now expected to be able to protect the downside for the next impulsive rally, but even if this support is broken, the downside is expected to limited and at no point should the invalidation point at 110.79 be broken.
Trading recommendation:
We are long EUR from 113.27 and will place out stop at 112.27. If you are not long yet, then buy during a break above minor resistance at 113.40 and use the same stop at 112.27.
The material has been provided by InstaForex Company - www.instaforex.com