The correction in wave (ii) has been much deeper than first expected, but even though the pitchfork support line was pierced shortly, prices quickly went back into the pitchfork. It could be the first good indication, that wave (ii) is over at 137.00. We will be looking for a break above the resistance line at 138.90 as confirmation that a low is indeed in place and a new strong rally higher is evolving. It will take an unexpected break below 137.00 to invalidate the bullish count.
Our stop at 137.85 was hit and we are now looking for a new EUR buying opportunity. We will buy EUR at 137.90 with a stop at 136.95
The material has been provided by InstaForex Company – www.instaforex.com