The correction from 122.12 has been deeper than we expected. These mini-rallies followed by deep corrections are a series of one's and two's and once the series of wave three's and four's being, we should see a powerful rally through minor resistance at 121.14 and more importantly resistance at 122.12 for a continuation towards the ideal target for wave iii/ at 125.77.
Only an unexpected break below minor support at 120.31 will indicate that red wave iv still is in motion but the potential downside should be limited to 119.84.
R3: 121.12
R2: 121.46
R1: 121.14
Pivot: 120.85
S1: 120.62
S2: 120.31
S3: 119.84
Trading recommendation:
We are long EUR from 120.90 with our stop placed at 120.25. If our stop is hit, we will re-buy EUR at 119.95
