With the dip to 131.55, the minor sideways correction should be complete and ready to build the next impulsive rally towards 134.07. This next rally should complete the blue wave (3) and set the stage for a new corrective dip close to 131.75 before turning higher again.
Support is now seen at 131.55 and then at 131.12, but we doubt that a break below support at 131.55 will be seen.
R3: 134.07
R2: 133.48
R1: 133.13
Pivot: 132.67
S1: 131.88
S2: 131.55
S3: 131.11
Trading recommendation:
We are long EUR from 129.11 with our stop placed at 130.85 Upon a break above 132.67 we will move our stop higher to 131.50. We will take profit on half our position at 133.90.
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