The break back below short-term important support at 121.22 is disappointing and has invalidated our bullish view for now. This break instead mean more downside pressure towards 119.65 for wave ii should complete and a new impulsive rally should be expected.
Only a direct break above resistance at 122.13 will indicate a low is in place and a new impulsive rally can begin.
R3: 122.13
R2: 121.89
R1: 121.65
Pivot: 121.34
S1: 121.04
S2: 120.75
S3: 120.50
Trading recommendation:
Out stop at 121.20 was hit for a small loss of 55 pips. We will only buy at 119.75 or upon a break above 122.13