After a perfect rally to 135.82 (a high came in at 136.00), the expected correction in red wave iv has taken over. The first target to look for is the low of wave four (blue wave iv in this case) of one lessor degree. The bottom of blue wave iv is located at 133.08, which is just above the 38.2% corrective target of red wave iii at 132.72. So, a bottom for red wave iv should be expected between 132.72 and 133.08 for the final rally in red wave v to finish the first impulsive rally from a long-term low at 126.02.
Our stop at 135.10 was hit for a very nice profit. We will look for a new EUR-buying opportunity at 133.15.
The material has been provided by InstaForex Company – www.instaforex.com