We expect a corrective low to be in place at near 129.76 (the 61.8% corrective target of red wave iii or alternate red wave i/. A break above minor resistance at 130.44 will be a strong indication that a new impulsive rally towards 133.60 is developing in red wave v or alternate red wave iii/.
As long as resistance at 130.44 is able to cap the upside, we could see a final spike closer to resistance at 129.75, but a corrective low should be set soon.
R3: 131.05
R2: 130.75
R1: 130.44
Pivot: 130.27
S1: 130.01
S2: 129.75
S3: 129.56
Trading recommendation:
Our stop at 129.80 was hit for a loss. We will buy EUR again upon a break above 130.44 and place our stop 10 pips below the most recent low.
