US Dollar - Euro

Here is an hourly chart of the cash US Dollar - Euro pair.

This morning I estimated that support would be found at 120.90. As you can see the market has dropped to that level and is now trading sideways near there.

I still think this market is headed for 125.00 and if I am right about this then the drop we have seen from the 122.05 level is a correction within a bigger uptrend. Now most corrections show a clear, three phase structure by the time they are complete. This move down from 122.05 does not yet show two distinct down phases yet, so I think we have only seen the first down phase within a larger correction. My best guess now is that the market will rally to 121.60 in the second phase of its correction and then drop to 120.20 in the third and final phase of the drop from 122.05.