Today's Support and Resistance Levels:
S1: 106.15 R1: 106.67
S2: 105.67 R2: 107.08
S3: 105.29 R3: 107.47
Technical Overview:
As we have seen a 23.6% retracement of wave i of 3, then it could be the end of wave ii. However, it would take a break above 107.08 to ease the downside pressure, and more importantly we need a break above 107.67 to confirm the bottom and at the same time indicate that wave iii of 3 is developing. That said, we shall remember that we are in wave 3 and correction during wave 3 tend to be small and even sub-normal. As long as we have not broken above 106.67 we have to accept that we could see a deeper correction of wave i down to the 38.2% retracement target at 105.04 before wave ii is finally over.
Trading Recommendation:
We booked a nice little profit on our short positions on Friday, as our profit target at 106.20 was hit. We are tempted to re-buy EUR here, but we will play it safe and wait to buy a break above 106.67 with a stop at 106.05.
