Today’s support and resistance levels:
Current spot: 148.78
The direct break above resistance at 148.30 calls for an extension in wave v higher to 152.15. Double extensions in the currency market are a rare phenomenon, which of course signals strong underlying weakness. Short-term support is now found at 148.33 and again at 147.83, which ideally will protect the downside for the continuation higher towards the extension target at 152.15. At this point, on a break below 146.70 will indicate that wave v and (i) is over and a deeper correction towards 142.06 was unfolding.
Our stop at 148.50 was hit for a loss. Trying to jump train now feels a little risky, so we will stay neutral for now.
The material has been provided by InstaForex Company – www.instaforex.com