Technical summary:

With a break above 128.80, the odds favor that red wave ii did end at the 50% corrective target at 127.42 and that new impulsive rally in red wave iii is developing higher towards 131.90. If we look at the long-term picture, the very complex correction that has been developing from a high of 145.69 in late December 2013 is most likely to end at 126.02, just 4 pips above the ideal target at 125.98, which marked the 38.2% correction of a rally from 94.10 to 145.69 and a new impulsive rally is expected to unfold soon. A rally that will take us away from a high of 149.55.

Trading recommendation:

We are long EUR from 128.85 and we will place stop at 127.35. If you are not long EUR already, then buy EUR near 128.00 or upon a break above 128.97 with the same stop at 127.35.