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