Today's Support and Resistance Levels:
S1: 109.92 R1: 110.82
S2: 109.50 R2: 111.30
S3: 109.05 R3: 111.93
Technical Overview:
Trading in the Far East began with a gap. Gaps are rare on the Currency Market and have a tendency to be closed almost at once, that could mean a small setback towards 109.92 before the next attempt to break above strong resistance in the 111.30 - 111.43 area. Once resistance at 111.43 is cleared, the next major target is 113.68. However, even 113.68 should not be too big of an obstacle as we expect the ongoing wave iii of 3 to extend and take us even higher to 117.44. That said, as long as major resistance at 111.43 holds firm we should expect a correction towards 109.92 before the next rally can be expected. Only a break below 109.03 will call for a more serious correction.
Trading Recommendation:
We are long EUR from 106.75 and will move our stop up to 108.95. If you are long EUR already buy a setback towards 109.92 with the same stop.
