The lack of upside acceleration is of concern, but as long as support at 127.24 stays untouched, we will continue to look higher for a rally towards 130.36 on the way higher to the 136.88 target. Short term support is seen at 127.76 which ideally will be able to protect the downside for a clear break above 128.60 confirming the expected rally towards 130.36 and higher.
That said, a break below 127.76 will be of concern, but only a break below support at 127.24 will invalidate our bullish outlook.
R3: 129.45
R2: 128.96
R1: 128.60
Pivot: 128.45
S1: 128.04
S2: 127.85
S3: 127.76
Trading recommendation:
We are long EUR from 128.15 with our stop placed at 127.20. If you are not long EUR yet, then buy near 127.88 or upon a break above 128.45 and use the same stop at 127.20.
