Wave summary:
The break above important short-term resistance at 104.03 has opened up the upside for a rally towards 118.58 and 122.00 as the next larger upside targets. This is also supported by the possible Inverse S/H/S bottom (not the most pretty we have ever seen). This bottom formation was triggered by the break above 113.80 and yields a target near 125.13 easily confirming the other two targets.Longer term, we are looking for much more upside pressure here, as we regard the corrective decline from 149.56 as complete and a new impulsive rally under development.
Trading recommendation:
We are long EUR from 114.05 with stop placed at 113.05. If you are not long EUR yet, then buy a break above 114.28 and use the same stop at 113.05.
