Wave iv is extending and has tested the 50% corrective target at 1.7105. The unexpected rally to the 50% corrective target has been followed by divergence on the RSI, indicating near-term exhaustion of the rally in the wave iv.
In the short term, a break below minor support at 1.7000 will be the first good indication that the wave iv has completed, while a break below support at 1.6950 will confirm that the wave iv is complete and the wave v lower to at least 1.1615 is developing.
R3: 1.7288
R2: 1.7247
R1: 1.7165
Pivot: 1.7105
S1: 1.7043
S2: 1.7000
S3: 1.6950
Trading recommendation:
We are short EUR from 1.6975 and has placed our stop at 1.7185
The material has been provided by InstaForex Company - www.instaforex.com