We continue to regard the decline from 117.88 as corrective in nature. This means a low for red wave ii is expected near 117.84 for a new impulsive rally well above the 117.88 peak. A break above minor resistance at 118.74 and more importantly a break above resistance at 119.16 confirms red wave ii is completed and red wave iii is developing towards at least 121.45. It is likely to move even higher towards 122.31.
Only an unexpected break below 117.67 will invalidate our bullish outlook.
R3: 119.16
R2: 118.74
R1: 118.41
Pivot: 118.13
S1: 117.87
S2: 117.67
S3: 117.31
Trading recommendation:
Our stop at 118.30 was hit for a small loss. We will re-buy EUR at 117.95 or upon a break above 118.74 with our stop placed at 117.60.
