We continue to look for more upside progress towards the ideal target for red wave iii at 123.55 before a more prolonged correction in red wave iv takes over. A break above minor resistance at 120.10 should pave the way for a rally to 122.66 on the way higher to 123.55.
Only a break below 121.52 will indicate a more complex correction is developing as blue wave (iv) and a dip to just below 121.03 should be expected before the next rally higher towards 123.55.
R3: 122.50
R2: 122.20
R1: 122.00
Pivot: 121.85
S1: 121.69
S2: 121.52
S3: 121.29
Trading recommendation:
We are long EUR from 120.25 with our stop placed at 121.40
