Today's Support and Resistance Levels:
S1: 101.78 R1: 102.35
S2: 101.45 R2: 103.04
S3: 101.04 R3: 103.41
Technical Overview:
We have now broken below the trendline support starting from 94.10. It indicates that the downside pressure will be building, but as we are in a corrective phase the decline to our ideal target at 99.35 will not be straight forward. As it can be seen on the chart above, we have now built a new base channel and to increase the downside pressure we need to break below it. If the rate breaks below the new base channel support line we should see a swift decline toward 101.04. However, there is a clear risk that the base channel support line protects the downside and causes a new mini rally towards 102.30 and maybe even 102.60 before the next downside pressure is seen.
Trading Recommendation:
You should be short EUR from 104.50. Move your stop down to 103.45. If you are not short EUR already you should sell at 102.50 with the same stop.
