We continue to track the triangle consolidation in wave Y/ of 2/. Within the triangle we have seen wave A/, B/ and C and is currently tracing out wave D/ towards the 124.65 - 124.75 area from where the final E/ is expected to take over for a dip close to 123.75. This should complete the complex wave 2/ correction from 127.08 and set the stage for a new impulsive rally in wave 3/ towards at least 129.82.
Ideally support at 123.66 will be able to protect the donwisde for a break above minor resistance at 124.15 indicating the next rally higher to the 124.64 - 124.75 area to complete wave D/.
R3: 124.65
R2: 124.38
R1: 124.14
Pivot: 124.00
S1: 123.85
S2: 123.66
S3: 123.60
Trading recommendation:
We are long EUR from 123.55 with our stop placed at 123.35. We will take 50% at 124.55.
