A break above the minor resistance line from the wave (i) high at 136.96 has been broken. The top of wave b at 135.35 has been broken too, indicating that the next impulsive rally higher in wave (iii) towards at least 144.03 is developing.
In the short-term, we will look for minor support at 134.72 to protect the downside for a break above 135.49 on the way higher to 136.96 and above towards 144.03. A break above the base channel resistance line near 139.00 will call for acceleration higher as wave (iii) is likely to extend beyond a target at 144.03.
We are long EUR from 134.20 and will place our stop at 133.60. If you are not long EUR yet, buy near 135.00 or upon a break above 135.49 with the same stop at 133.60.
The material has been provided by InstaForex Company – www.instaforex.com