The break below support at 1.7477 has forced us to review our count from the peak of red wave i/. The break below 1.7477 indicates, that red wave ii/ still is in motion, but could just have completed or be very close to completion. The first good indication of a corrective low being in place, will be a break above resistance at 1.7557 and more importantly a break above resistance at 1.7657.
As long as resistance at 1.7557 stays untouched, we must accept the possibility of red wave ii/ moving a little lower towards 1.7357, but we think the potential downside is limited to here.
R3: 1.7598
R2: 1.7557
R1: 1.7493
Pivot: 1.7476
S1: 1.7455
S2: 1.7400
S3: 1.7357
Trading recommendation:
Our stop at 1.7465 has been hit. We will only buy a break above 1.7557.
The material has been provided by InstaForex Company - www.instaforex.com