The break below important support at 121.46 told us that the corrective decline from 141.06 is not over yet and calls for more downside movement towards the 117.95 - 118.20 area before the long-term correction from 149.56 finally is over. Thus, we really do not feel very comfortable about the downside trend. The very complex decline from 141.06 with lots of overlapping waves is destined to terminate soon and once it does, it could trigger one stop-loss after another and cause a very speedy rally back to 141.06 and above.
In a short-term prospective, it will take a break above minor resistance at 122.60 to indicate that a low is in place, while a break above the resistance line near 124.19 will confirm the bottom and call for a rally towards 127.21 as the first larger hurdle on the way higher.
Our stop at 121.45 was hit for a small loss. We are reluctant to join the downside trend as it seems very limited. Instead we will buy the EUR at 118.25 upon a break above 122.60.