Guys,
the advance has now slowed down, prices are still below the mid-line of our base channel
suggesting our super-dynamic 1-2-1-2 is not supported by the market and we have to start taking into consideration other patterns that may be under development based on what we already see - one of them is what Venelin just has pointed out.
The subdivisions of the advance are open to different views. The advance from 1.2268 has overlapping waves which is an early warning of a potential reversal. One possible scenario is another pullback may be under development off the 1.2365 peak back to the 1.2285 - 1.2255 area before the advance resumes. In this case my circle II is still unfolding and will shift to the right bottoming around 50-62% retracement.
Note that an impulsive breach of 1.2268 may indicate further weakness and put bullish view under pressure. Keep in mind that bullish scenarios are still valid as long as 1.2154 holds as support.
For immediate bullish follow through we really need to see the Euro continue higher against 1.2268 in order to keep the 1-2-1-2 forecast in good standing. Trading back inside the 1-2 base channel and above its mid-line will put the bullish outlook on solid footing.
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