The 135.82 target is currently being tested. It is likely to mark the top of red wave iii and call for a correction in red wave iv to just above support at 133.08. As red wave ii was a simple zig-zag correction, a shallow but complex red wave iv should be expected before red wave v higher to 137.54.
In the short term, we expect minor support at 135.16 will protect the downside to test the ideal red wave iii target at 135.82. A break below 135.16 will be the first warning that red wave iii has peaked and red wave iv towards 133.08 is developing.
We are long from 128.85 and will move our stop higher to 135.10. If our stop is hit, we will re-buy EUR at 133.15.
The material has been provided by InstaForex Company – www.instaforex.com