A decline from 141.06 still looks more as a correction than top. So, we will stay bullish for more upside pressure once this correction is found. Ideally, we will see the bottom of red wave ii/ near 137.51 where red wave y is equal in length to red wave w. To indicate that the bottom in place, a break above minor resistance at 139.17 is needed. A break above resistance at 140.63 will be needed to confirm that the correction in red wave ii/ is over and acceleration higher in red wave iii/ is expected towards 144.03.
As long as minor resistance at 139.17 protects the upside, the decline towards 137.17 is getting deeper before the next move up.
Our stop at 137.90 was hit for a small loss. We will only buy EUR upon a break above 139.17 and place our stop 10 pips below the most recent low.
The material has been provided by InstaForex Company – www.instaforex.com