Technical summary:
An expanded flat correction has unfolded as expected. We are now looking for an upside acceleration through resistance at 138.14 confirming a continuation higher towards at least 141.52 and possibly even higher to 143.05, which also marks the inverse S/H/S bottom measured target.
Only an unexpected break below support at 133.27 will invalidate the bullish outlook and indicate that the entire rally from 126.05 has been part of a more complex correction and that the low of 126.05 will be retested.
Trading recommendation:
We are long EUR from 134.07 and will move our stop higher to 135.10 upon a break above resistance at 136.44. If you are not long EUR yet, then buy near 135.92 or upon a break above resistance at 136.44 and use the same stop at 135.10.
