A correction in wave ii has turned into expanded flat, which calls for a decline to just below 135.45 in wave c of ii before an extended rally higher to at least 141.52 takes over as wave iii develops.
In the short term, we are looking for a decline to just below 135.45 in order to close at 135.00 before the next strong rally higher to the level of 141.52 and even higher to 143.07. Only an unexpected break below 133.07 will invalidate the bullish outlook.
We are long EUR from 134.07 with stop placed at 134.25. If you are not long EUR yet, buy near 135.00 with the same stop at 134.25.
The material has been provided by InstaForex Company – www.instaforex.com