With the break below key-support at 117.54 is clear that a more complex wave ii correction has been unfolding. The second corrective wave is currently unfolding. It should make a dip into the 117.15 - 117.28 area before completing and setting the stage for a new impulsive rally in wave iii towards at least 121.98 and likely even higher.
For now, we will look for a final dip into the 117.15 - 117.28 area as long as minor resistance at 117.91 is able to cap the upside. A break above this resistance, will be the first indication that wave ii has completed and wave iii is developing.
R3: 118.51
R2: 118.23
R1: 118.07
Pivot: 117.91
S1: 117.52
R2: 117.28
R3: 117.15
Trading recommendation: Our stop at 117.50 was hit for a small loss. We will buy EUR again at 117.35 or upon a break above 117.91
