Wave c of ii broke below support at 127.68, which called for an extension to 126.79 (the low has been seen at 126.61). This is also very close to the 61.8% correction of wave i, which is seen at 126.76. Therefore we favor wave ii as being complete and wave iii towards at least 135.81 as being in its early stages.
That said, we need to see a break above minor resistance at 128.51 to confirm that wave ii indeed did complete with the test of 126.61 and wave iii higher is developing.
Short-term support is now seen at 127.16 and again at 127.03.
R3: 128.51
R2: 128.14
R1: 127.70
Pivot: 127.35
S1: 127.16
S2: 127.03
S3: 126.81
Trading recommendation:
Our stop at 127.60 was hit for a loss. WE will be looking for a new EUR-buying opportunity and will buy EUR at 127.20 or upon a break above 127.70. We will place our stop at 126.555
