The break above 170.77 indicates that an expanded flat correction is unfolding. This means a continuation higher to 1.7198 as an ideal target with an outside chance for a rally higher to 1.7273 if the b-wave extends before downside in wave c.
The short-term support is found at 1.6966 which ideally should protect the downside for the rally towards 1.7198 in wave b before lower in wave c. Only a direct break below 1.6893 will indicate that wave b peaked early and wave c is already unfolding.
We were not looking for an extended flat, so our stop at 1.7078 was hit. We will wait to sell EUR at 1.7185 with stop placed at 1.7285.
The material has been provided by InstaForex Company – www.instaforex.com