The break below support at 128.48 has shifted the preferred count in favor of a large expanded flat developing as wave ii. Under this count, the ideal target for wave C of ii is seen at 126.00 from where a new impulsive rally in wave iii should take over.
Time wise wave ii is approaching its limit, which is nine times the time-span of wave i. This time-limit is seen on August 30.
Short-term resistance is now seen at 128.48 and again at 129.00. The later should be able to cap the upside. A break above 129.00, will be the first warning that the corrective pattern in wave ii could have completed.
Our stop at 128.45 was hit for a 27 pips loss. We will be looking for a new EUR-buying opportunity at 126.25 or upon a break above 129.00.
The material has been provided by InstaForex Company – www.instaforex.com