A break below support at 1.7426 decided that the small triangle was a b-wave triangle and more downside action was to be expected. That also means that wave (iii) ended with a spike towards 1.9023 and wave (iv) now is unfolding towards 1.6599 as an ideal target. We will not alone find the 50% corrective target of wave (iii) at 1.6599, but it’s also close to the bottom of wave iv of one lessor degree, which is a very common target for wave four correction of one larger degree.
Ideal resistance at 1.7524 will protect the upside in order to continue lower to 1.6599.
We sold EUR at 1.7425 and will place our stop at 1.7650 and take profit will be placed at 1.6625.
The material has been provided by InstaForex Company – www.instaforex.com