The decline from the 123.37 peak has been much deeper than first expected. That does raise the question whether the rally from 120.79 is the start of a new impulsive rally or just a temporary pause before renewed downside pressure is seen. The judge of that is support at 120.94. As long as this short-term important support is able to protect the downside, we will look for more upside pressure and a break above minor resistance at 121.84 will call for a new rally towards 123.36 and 124.16 next.
If, however support at 120.94 is broken, the we must regard the rally from 120.79 as an X-wave and a new low closer to 120.55 should be expected
R3: 122.24
R2: 122.13
R1: 121.84
Pivot: 121.69
S1: 121.40
S2: 121.19
S3: 120.94
Trading recommendation:
Our stop at 121.60 was hit. We will re-buy EUR here at 121.50 with our stop placed at 120.90
