An expected correction lower to 135.18 and possibly even lower to 134.04 is unfolding. That means X-waves do not have to be perfect three-wave corrections. Often, they are just as what we have seen in this cross and strong move where it is almost impossible to count the waves once the move is over, so is the x-wave and the next impulsive wave can take over to the downside.
In the short term, we expect resistance at 136.41 to protect the upside for a decline to 135.18 and possibly even lower.
We took profit at 50% of our short position from 136.41 at 135.65 and will move our stop lower to 136.45
The material has been provided by InstaForex Company – www.instaforex.com