The EUR/USD extended another 200 pips higher since Friday, so now we are even more confident that low on the pair is in place, as expected due to the ending diagonal, reversal pattern placed in wave 5). Recovery from the 1.2747 low is very strong, so we think it represents only one part of a larger recovery that could extend up to 1.3200 in April.

At the moment, we are tracking wave A) that is already testing important 1.3050-1.3100 resistance area back from mid-March, where there was also a gap that occurred on 18th of the moment. This zone could cause a reversal in price. We would not be surprised to see a top formation around current levels followed by a corrective pull-back in wave B) back to 1.2900-1.2950 zone (NFP report zone) over the next few days.

Forex Analysis by Gregor Horvat at ForexPros. com