The decline in wave c of ii has exceeded the expected target of 126.01 and it looks like more downside pressure will be needed after a correction towards 127.30. We do not expect this final decline to move much below 125.20 and it must stay above the start of wave i at 124.59. If this low is broken that will invalidate our bullish count and a re-count will then be needed.

Short-term a break above 126.23 will confirm that wave iii/ of c has completed and a corrective rally to 127.30 is developing in wave iv/ of c before the final dip to just below 125.20 to complete wave v/ of c and the expanded flat correction in wave ii.

R3: 127.30

R2: 126.81

R1: 126.23

Pivot: 125.75

S1: 125.22

S2: 124.97

S3: 124.59

Trading recommendation:

We bought EUR at 126.26 and we will start by placing our stop at 124.50.