The failure to build on the low at 123.35 indicates that the wave ii is not yet complete and a more complex correction is developing. In this regard, a deeper correction towards the support area between 122.14 - 122.51 should be expected before a possible low is established.
Resistance is now seen at 123.74 and again at 124.30. And only a breakout above the later will indicate that the wave 2 has completed and the wave 3 is ready for a new impulsive rally above 126.77.
R3: 124.30
R2: 123.74
R1: 123.49
Pivot: 123.09
S1: 122.75
S2: 122.51
S3: 122.14
Trading recommendation:
We are long EUR from 124.05. We will move our stop higher to 123.10 or, if possible, take our loss at 123.55.
