Wave summary:
The break above the minor resistance at 1.6616 is a strong indication that red wave iv completed already at 1.6407 and red wave v/ towards 1.6969 now is developing. Short-term, we are looking for minor support at 1.6469 to be able to protect the downside for the next impulsive rally higher to at least 1.6758 and possibly even closer to 1.6969 in red wave v.
Only an unexpected break below 1.6407 will confirm that red wave iv has not completed yet, but the potential downside should be very limited.
R3: 1.6969
R2: 1.6758
R1: 1.6690
Pivot: 1.6600
S1: 1.6500
S2: 1.6469
S3: 1.6407
Trading recommendation:
We are long EUR from 1.6611 with stop placed at 1.6400. If you are not long EUR yet, then buy near 1.6469 and use the same stop at 1.6400.
The material has been provided by InstaForex Company - www.instaforex.com