formation, we can assume that it will hit at least 3 different targets: Target 1 is a relatively new S&R level that seems to have formed at the beginning of May, Target 2 is a strong S&R level that stretches back a few months and happens to coincide with the 0.382 fib level of the yellow retracement lines, and finally Target 3 which is the area between the 0.236 fib level and the price where the originated from.
In a longer-term view, we can see a double-top forming following a price rejection at 125.82. In keeping with how I usually approach double-top formations, there are two targets: A conservative target that is placed at the neckline and an aggressive target that is equidistant from the neckline.
Despite all this analysis, the consensus on the Euro remains . However, now that the French elections are behind us we can position ourselves quite nicely if the Euro ends up cooling off and losing momentum. In the event that it stays and breaks through the 125.82, we have a simpler play worth about 65 pips which should tide us over until things clear up.
Play (Medium Term)
TP: 124.554, 123.813, 123.355
Play (Long Term)
TP: 123.074, 120.704