As the US market was closed for Martin Luther King Day, nothing much happened in yesterday's trading. We still favor a more complex correction in wave ii and resistance at 124.93 being able to cap the upside for a final dip towards 122.70 to complete wave ii and setting the stage for the next impulsive rally higher in wave iii towards 132.12.
Only a direct break above 124.93 will indicate that wave ii already has completed and wave iii is developing towards 132.12.
R3: 125.81
R2: 125.19
R1: 124.93
Pivot: 124.71
S1: 124.20
S2: 123.73
S3: 123.37
Trading recommendation:
We will buy EUR at 123.00 or upon a break above 124.93.