The correction from 122.12 has been deeper than we expected. These mini-rallies followed by deep corrections are a series of one’s and two’s and once the series of wave three’s and four’s being, we should see a powerful rally through minor resistance at 121.14 and more importantly resistance at 122.12 for a continuation towards the ideal target for wave iii/ at 125.77.
Only an unexpected break below minor support at 120.31 will indicate that red wave iv still is in motion but the potential downside should be limited to 119.84.
We are long EUR from 120.90 with our stop placed at 120.25. If our stop is hit, we will re-buy EUR at 119.95
The material has been provided by InstaForex Company – www.instaforex.com