We have seen a nice rally to a new high, just as we expected. We continue to look for even more upside towards 1.6915 and even higher to 1.7050. That said we have to be aware that a five wave rally now can be counted from a low of 1.3880 . So, there is a mounting possibility of a larger correction.
In the short term, we are calling for support near 1.9590, which will ideally protect the downside for the next rally higher to 1.6915. Even if support at 1.9590 gets broken, the back-up support is found just below at 1.9557, which then should be able to do its job and protect the downside. Only an unexpected breakout below 1.6494 will the uptrend development in question.
We are long EUR from 1.6588 and will move our stop higher to 1.6485 and will place take profit at 1.6900. This is not the time to become overly bullish as a five wave rally already can be counted.
The material has been provided by InstaForex Company – www.instaforex.com