The correction in blue wave ii needed more time to unfold and we have seen a second dip to just below the ideal target at 120.05 (the low has been seen at 119.96). This should be enough to set the stage for the next impulsive rally towards 122.35 and 123.58 as the next upside targets.
A break above minor resistance at 120.29 will be the first good indication that blue wave ii has completed and blue wave iii towards 122.35 is developing. A break above resistance at 120.48 will confirm blue wave iii is in progress.
R3: 121.13
R2: 120.85
R3: 120.48
Pivot: 120.29
S1: 120.09
S2: 119.96
S3: 119.76
Trading recommendation:
We are long EUR from 117.25 with our stop placed at 119.30. If you are not long EUR yet, then buy near 120.05 or upon a break above 120.29 and use the same stop at 119.30
