The correction from the 137.74 peak is unfolding as expected. We have already seen the 23.6% corrective target at 137.66 being exceeded. The pair may rise to support in the 136.33 - 137.10 area. A decline to the 38.2% corrective target at 136.33 is unlikely to occur. The pair may rally back to the peak at 137.74 before another decline to 136.33 to complete the correction in red wave iv.
Looking at the RSI, a break below index 41.39 will indicate the completion of red wave iv and the possible onset of red wave v to 141.06.
R3: 138.18
R2: 137.70
R1: 137.37
Pivot: 137.21
S1: 136.87
S2: 136.33
S3: 135.97
Trading recommendation:
We will re-buy the 50% position we sold at 139.07 here at 137.25 and keep our stop at 135.05 for the full position.
The material has been provided by InstaForex Company - www.instaforex.com