The expected red wave iv correction is unfolding nicely. The structure still doesn't look complete, so we continue to look for more downside closer to the 130.61 - 130.77 area from where a new impulsive rally in red wave v could begin.
Only a direct break above minor resistance at 131.78 will confirm that red wave iv completed early and red wave v already is starting to develop towards the 133.02 - 133.60 area. This is the most likely target-area for red wave v.
R3: 132.11
R2: 131.98
R1: 131.78
Pivot: 131.16
S1: 130.85
S2: 130.77
S3: 130.61
Trading recommendation:
We will buy EUR at 130.80 or upon a break above 131.78.
The material has been provided by InstaForex Company - www.instaforex.com