Technical summary:
We are still certain that a firm bottom has been found at 126.02. The big question right now is which path the first minor wave has taken. Have we seen a series of waves one and two or has a leading diagonal developed? If prices are accelerating higher from here, a series of waves one and two is the correct answer, while a correction to 126.73 or slightly below will favor the leading diagonal. For now, we will wait for patiently and let the market show its real hand.
Trading recommendation:
We are long EUR from 126.96 and will move our stop higher to 127.45. If our stop is hit, we will re-buy EUR at 126.80 with a stop at 126.00
