A breakout below important support at 126.14 told us that the corrective decline is still unfolding. The decline from 141.04 has turned onto a very complex triple zig-zag correction and we are now in the final zig-zag correction towards 119.90 over coming weeks.
As two other corrections were pretty hard to read, we should expect the same this time. However, it seems to be a common feature between the first wave of the zig-zag pattern and that is the support line which was tested twice and if this is the case here too we should see another decline closer to 125.00 before wave b takes over for a rally back to the resistance line.
We bought EUR at 126.10 and hit the stop revers at 126.10. So now we are short EUR from 126.10 looking for an opportunity to take profit near 125.00.