After the dip to 123.35, we are looking for a breakout above 124.61 to confirm that the wave ii has completed and the wave iii towards 127.50 and 129.35 is developing.
Short-term support is seen at 123.75 which will be able to protect the downside for the expected breakout above 124.61 in order to increase upside pressure to 125.23.
Only a breakout below 123.35 will keep the wave ii alive calling for a move closer to 123.10 and maybe even to 122.10 before the wave ii finally finds its bottom.
R3: 125.15
R2: 124.60
R1: 124.09
Pivot: 123.75
S1: 123.35
S2: 123.10
S3: 122.75
Trading recommendation:
We are long EUR from 124.05 with our stop placed at 123.05.
