The correction in red wave iv became a little higher than expected, but is still holding below important short-term resistance at 129.06. Look for red wave v lower towards 125.98 soon. In the short term, a break below minor support at 128.09 and a more important break below support at 127.28 is likely to confirm a decline to 125.98. Now, we are in the final parts of wave C decline of the major expanded flat correction, which has been developing for the last three months. When this correction is over, we will be looking for a new impulsive rally higher. But for now, we still have to focus on the downside and look for signs that the bottom could be in place.
We are short EUR from 133.90 with stop place at 129.10. We will keep our take profit at 126.25. This is very late in the downtrend, but a quick short here at 128.21 with a stop at 129.10 and take profit at 126.25 should still make a nice risk reward.
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