As we suspected, wave iv rose slightly above minor resistance at 120.42. The peak at 120.99 should be enough to complete wave iv and set the stage for the final decline in wave v towards the 118.85 -119.24 target-zone. This should complete the correction in wave 2 and mark the beginning of a new impulsive rally in wave 3.
In the short term, a break below support at 120.42 (former resistance turns into support) will confirm that wave iv has completed and wave v is developing.
R3: 121.43
R2: 121.26
R1: 120.99
Pivot: 120.68
S1: 120.42
S2: 120.05
S3: 119.75
Trading recommendation:
We sold EUR at 120.40 with a 121.26 stop. We take profit and buy EUR at 119.25.
