The failure to rally from 118.41 is concerning, but as long as key-support at 117.54 stays intact we will keep our bullish expectations for a new impulsive rally towards at least 121.97. In the short-term, a break above minor resistance at 118.79 will be the first strong indication that the next impulsive rally higher is developing.
Should an unexpected break below key-support at 117.54 be seen, it will tell us, that a much more complex wave ii has been developing and a dip to 117.15 is expected before turning higher again.
R3: 118.72
R2: 118.53
R1: 118.35
Pivot: 118.07
S1: 117.72
S2: 117.54
S3: 117.15
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50. If our stop is taken out, we will re-buy EUR at 117.25.
