The financial panic seen yesterday in the wake of the collapsing stock markets spilled over into the currency market. For this cross it meant a super spike to 1.9023. Instead of this rally being the top of wave (v), it’s more likely that we are in wave (iii) higher towards 1.9567 before a correction in wave (iv) should be expected.
In the short term, we expect support at 1.7553 to be able to protect the downside for a break above minor resistance at 1.8005 that will call for the final rally higher to 1.9567. Only a break below 1.7553 will delay the expected rally higher for a move closer to 1.7277.
We missed our buy-target at 1.7223, but will buy upon a break above minor resistance at 1.8005 and place take profit at 1.9550 if done.
The material has been provided by InstaForex Company – www.instaforex.com