Wave summary:
The decline from 125.81 has extended and a low does not yet seem to be in place, this calls for a little more downside to 123.02 and maybe even slightly closer to the invalidation point seen at 122.53. Should this support be broken, that would indicate that a more complex wave B correction is unfolding.
At this point, only a break above minor resistance, seen at 124.11, will ease the downside pressure, while a break above resistance at 124.65 will confirm that a new impulsive rally to above 125.81 is developing.
R3: 124.65
R2: 124.11
R1: 123.88
Pivot: 123.50
S1: 123.02
S2: 122.82
S3: 122.53 - Invalidation point
Trading recommendation:
Our stop at 123.20 was hit for a 100 pip loss. We will look to buy EUR again at 123.05 with stop placed at 122.50.
