The correction from 131.99 has opted for the deeper correction near the 50% corrective target of the red wave iii at 130.18 (The low has been seen at 130.11). This is more than enough to complete the correction in the red wave iv and start moving higher in the red wave v towards the 133.02 - 133.60 area.

However, the deep corrective decline does open for an even more bullish long-term count. The rally from 128.44 to 131.99 could be counted as only red wave i/ and the ongoing correction from 131.99 as the red wave ii/. If this is the case, then next impulsive rally higher should have no problem in breaking well above the 133.60 target.

R3: 131.05

R2: 130.75

R1: 130.47

Pivot: 130.27

S1: 130.11

S2: 129.88

S3: 129.76

Trading recommendation:

We are long EUR from 130.80 with our stop placed at 129.80. If you are not long EUR already, then buy a break above 130.75 and use the same stop at 129.80.