The correction in red wave ii from 123.18 continues to the 78.6% corrective target at 121.64 before turning up again. We are looking for a break above 121.96 as the first solid indication that red wave ii has completed and red wave iii towards 124.79 is developing.
In the short-term, we see support near 121.69 this support will ideal mark the low for a strong attack of minor resistance at 121.96.
R3: 122.49
R2: 122.18
R1: 121.96
Pivot: 121.69
S1: 121.64
S2: 121.22
S3: 121.07
Trading recommendation:
Our stop at 121.75 was hit for a 100 pips profit. We will buy EUR again at 121.75 or upon a break above 121.96 with our stop placed at 121.40