The extended rally in red wave iii seems to have peaked between the 261.8% and the 300% extension target of red wave i. We should now be looking for red wave iv. As red wave ii was a simple zig-zag correction, we should expect a shallow but complex correction in red wave iv. A correction that likely will not move lower than the 132.95 – 133.45 area. Once the correction in red wave iv is over, a new rally higher towards 137.40 should be expected to end the first impulsive rally of the 126.02 low.
We are long EUR from 128.85 and will move stop higher to 132.75. If you are not long EUR yet, then but EUR near 133.45 with the same stop at 132.75.
The material has been provided by InstaForex Company – www.instaforex.com