Technical summary:

Wave (v) lower is well advanced, but we are still looking for one final decline towards 125.98 to end wave (v) of C of the expanded flat correction, that has been unfolding since late December 2013. Once wave (v) is done, a new impulsive rally to above 149.55 is expected. In the short term, we expect the minor resistance-line near 130.32 to protect the upside for a break below minor support at 128.33 confirming the decline closer to 125.98. Only an unexpected break above 131.51 will indicate that wave (v) ended prematurely at 126.87 and the impulsive rally higher already has begun.

Trading recommendation:

We are short EUR from 129.85 we will move our stop lower to 129.50.