The rally turned out to be stronger than expected, but then we are in wave (iii) and this wave is the strongest one. We would also expect this wave three to be the strongest of the impulsive waves. Especially because of the expanded flat wave (ii) as an expanded flat wave two should always be taken as a warning that wave three will extend.
In the short term, we are looking for resistance at 1.5856, which could provide enough strength for a minor correction lower to 1.5520 and maybe even slightly lower to 1.5414 before the next rally higher to 1.6446 and above.
Our take profit at 1.5630 was hit for a nice big profit. We will re-buy EUR at 1.5535.
The material has been provided by InstaForex Company – www.instaforex.com