EUR/USD: trade idea
- EUR/USD approaches support level 1.1125
- Next sell target - 1.1000
EUR/USD recently reversed down from the resistance zone lying between the resistance level 1.1450 (which also previously reversed minor ABC correction 4 at the start of February, as you can see from the daily EUR/USD chart below), the upper daily Bollinger Band and the 38.2% Fibonacci Correction of the earlier minor impulse wave (v) from January. The latest downward reversal form this resistance zone completed the second minor correction (ii) of the active impulse wave 5.
EUR/USD is currently approaching the support level 1.1125 (which reversed the recent sharp minor impulse wave 3 in January). If the pair breaks this support level, EUR/USD can be expected to fall further to the next sell target 1.1000 (target price for the termination of the larger intermediate impulse (3) from May of 2014).