Wave summary:
The break above minor resistance at 123.01 has weakened the case for a decline to 119.70, but it has not invalidated the possibility entirely. The failure to follow through on the break above 123.01 indicates a more complex correction is unfolding in wave c of (iv).
In the short term, we expect yesterdays high at 123.20 to be able to cap the upside for a break below minor support at 122.41 and more importantly below support at 122.01 that confirms a new test of 121.64 and lower towards 120.95 and possibly closer to 119.70 before wave (iv) is complete. Only a direct break above the yesterday high at 123.20 and more importantly above resistance at 123.64 will confirm that wave (iv) is complete and wave (v) of 3 higher to 126.54 is unfolding.
Trading recommendation: Our stop at 123.05 was hit for a small profit. We will sell EUR upon a break below 122.41 and place stop at 123.00. Take profit will be placed at 120.25.
