Technical summary:
The base channel resistance-line at 130.21 has protected the upside but we think it is only a matter of time before this resistance line gets broken in favor of acceleration higher towards 131.90. In the short term, we expect support at 128.76 to protect the downside for a break above 129.73 and more importantly a break above 130.21 for acceleration higher.
Only an unexpected break below 127.83 will be of concern.
Trading recommendation:
We are long EUR from 128.85 and will keep our stop at 127.80 for now. If you are not long EUR yet, then buy near 128.76 with the same stop at 127.80.
