[B]Commentary[/B]: The daily close above the trendline drawn off of the October 2006 and January 2007 highs instills confidence in the bullish bias and a measured objective is at the 100% of 1.1993-1.2329/1.2145 at 1.2481.
As mentioned Friday, this line is also the neckline from a 13 month head and shoulders pattern. From an EW perspective, the rally from 1.2145 is the 3rd of a 3rd wave rally, which often produce the most powerful moves. A rally through the mentioned 1.2481 level gives scope to an a confluence of Fibonacci targets at 1.2687/89 (100% of 1.1877-1.2571/1.1993 and 161.8% of 1.1993-1.2329/1.2145). These are targets that should be reached within 2 to 4 weeks. Near term, risk of a pullback is high as it looks like a clean 5 waves is close to complete. Support should be strong near 1.2372 [B]Strategy[/B]: Bullish now, against 1.2145, targeting 1.2500 and 1.2700 (add to position at 1.2372)