TA recent rally was more impulsive than we had expected. It is almost impossible to count the waves, and that does indicate that this is another X-wave rally and not the start of a new impulsive rally towards the territory above 141.06. Yes, we woul prefere to get closer to the descending channel (resistance line) near 138.50, but the rally from 132.19 is overextended and could need a correction soon.
In the short term, we will be looking for resistance at the levels of 137.41 – 137.02 for a break below minor support at 135.72 indicating a correction lower to 134.32 and even lower to 133.81 before the next move higher.
We will sell EUR here at 136.30 with a stop at 136.75 and place take profit at 134.50.
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