We continue to expect a corrective low was found with the test of 117.02. A new impulsive rally towards at least 121.93 is starting to develop. That said, we still need proof in form of a break above minor resistance at 117.97 and more importantly a break above resistance at 118.47. A break above the later, will confirm that wave ii completed with the test of 117.02 and wave iii higher to at least 121.93 is unfolding.
Should an unexpected break below 117.02 be seen, it should be short-lived and the downside potential should be limited to 116.79.
R3: 118.47
R2: 118.18
R1: 118.02
Pivot: 117.97
S1: 117.66
S2: 117.41
S3: 117.22
Trading recommendation:
We are long EUR from 117.20 with our stop placed at 116.95