We are still looking for one final decline closer to the ideal target at 1.4725. That said yesterday’s rally to 1.5079 wasn’t a part of our roadmap and it does cause concern. The only pattern that allows the overlap we saw yesterday is an ending diagonal. So, this is what we will be looking for as long as resistance at 1.5079 protects the upside.
That said, a break above resistance at 1.5079 will invalidate the bearish count and indicate that a bottom already is in place at 1.4926 and a new impulsive rally in wave (iii) should be expected.
We are short EUR from 1.4995 and will move our stop+reverse lower to 1.5080 and we will place take profit+reverse at 1.4950.
The material has been provided by InstaForex Company – www.instaforex.com