We still think that a wave (ii) low was seen at 61.8% corrective target at 135.23 and wave (iii) is about to unfold now. In the short term, we wil need a break above minor resistance at 136.62 to add confidence in this call for a rally higher to 139.02 and above to 141.06.
A break below support at 135.23 will be of concern, but it will take a break below 133.27 to invalidate the bullish outlook.
We are long EUR from 136.42 with stop placed at 134.90. If you are not long EUR yet, buy on a break above 136.62 with a stop at 135.20.
The material has been provided by InstaForex Company – www.instaforex.com