A break above minor resistance at 1.5109 warned us that the correction in wave (ii) has already terminated at 1.4927 and a new impulsive rally in wave (iii) is developing. The first target for wave (iii) is seen at 1.6310 where the wave (iii) will be equal in length to the wave (i). This means that as an expanded flat wave (ii) is seen, we should look for an extension in wave (iii) with the first target at 1.7154. So, that will be the first target to look for.
Short-term minor support at 1.5277 will ideally protect the downside for a break above 1.5405.
Wave (i) was a textbook five wave rally. But it’s wave three where the real money is made, as this wave is normally very powerful and corrections tend to be small. Wave three is the wonder to behold!
We are long EUR from 1.5080 and will move our stop higher to 1.5180. If you are not long EUR yet, then buy EUR near 1.5277 with the same stop at 1.5180.
The material has been provided by InstaForex Company – www.instaforex.com