We have seen a spike below the support line, but no close below the line. This spike was followed by a bullish divergence, but also a hidden divergence. This is indicating a rather powerful rally in wave 3 towards the long-term circle wave 5 target at 1.2763.
Short-term we would like to see a break above minor resistance at 1.1975 as confirmation that wave 2 completed with the spike to 1.1807 and wave 3 of circle wave 5 is in motion.
To invalidate our bullish outlook a break below 1.1704 is required.
Trading recommendation:
Buy EUR and place your stop below 1.1807 for a rally towards 1.2763
