Here is an hourly chart of cash trading in the US Dollar / Euro pair.
I thought this market would rally from support at 120.90 to a lower top and then drop to 120.00, thus completing a three phase reaction. As you can see from the chart no rally developed and since then we have dropped below support at 120.20. I think this market will hold 119.60 and then rally into the 120.70 - 120.90 zone. From there the third phase of the drop from 122.07 should carry prices down to 118.90.
Once this correction from 122.07 is over I am looking for a rally to 125.00. I shall stick with that view unless prices break below the 118.25 level.
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