Wave summary:
The corrective decline in wave B is unfolding as expected. We should now see minor resistance at 124.02 protecting the upside for the next decline to the 120.69 target. This will likely complete wave B and set the stage for a new impulsive rally in wave C. That said, we need to allow for wave B to run it course before deeming it complete.
Short term, a break below minor support at 123.61 will indicate the the ongoing x-wave is complete and wave y lower towards 120.69 is unfolding.
R3: 124.52
R2: 124.33
R1: 123.02
Pivot: 123.80
S1: 123.61
S2: 123.44
S3: 123.11
Trading recommendation:
We are short EUR from 123.50. We will move our stop lower to 124.15. Our take profit will be placed at 120.85.
