After a day trading in a very narrow band between 117.80 - 118.01 we must wait patiently whether a break above short-term resistance at 118.56 is seen. Indicating that the correction in red wave ii is complete and a new impulsive rally is ready to develop for a move higher to at least 121.98 or a break below short-term important support at 117.54 is seen for a final dip closer to 117.15 to complete red wave ii and set the stage for a new impulsive rally in red wave iii towards at least 121.98.
Thus, we should wait for the next impulsive rally to start.
R3: 118.79
R2: 118.56
R1: 118.35
Pivot: 118.21
S1: 118.07
S2: 117.72
S3: 117.54
Trading recommendation:
We are long EUR from 118.25 with our stop placed at 117.50