Today's Support and Resistance levels:
S1: 110.32 R1: 110.79
S2: 110.06 R2: 111.30
S3: 109.56 R3: 111.93
Technical Overview:
As it was expected, the gap between 109.92 and 111.03 was filled at once. With a low at 109.93 we could be headed for the next serious test of strong resistance in the 111.30 - 111.43 area, but once this area is overcome we will see the next rally higher towards at least 113.68. That said, in the short term we need to clear a minor resistance at 110.79, before a more firm test of strong resistance in the 111.30 - 111.45 area will be seen. As long as the level of 110.79 protects the upside, we must accept the possibility of a more complex correction down to 109.56. As always it should be worth to remember that we are in wave iii of 3 and corrections tend to be small and even sub-normal.
Trading Recommendation:
We are long EUR from 106.75 with a stop at 108.95. If you are not long EUR already, then buy a break above 110.79 with the same stop.
