Today's Support and Resistance Levels:
S1: 110.70 R1: 111.34
S2. 110.40 R2: 111.84
S3: 110.14 R3: 112.44
Technical Overview:
The ongoing correction is the "biggest" correction we have seen since the 105.97 low. It tells us that we have likely seen the top of wave iii with the test of 112.49 and should now look for a correction towards the 38.2% retracement level of wave iii. This retracement target comes in at 110.00. However, looking at the internal structure of the correction we might just need a slightly deeper correction towards 110.47 before this correction is over and the next rally higher towards 113.15. In the short term we expect a move to 111.08 before the last downswing towards 110.47 and maybe even 110.00 before this correction terminates and the next rally higher can begin. Only a direct break above 111.51 will tell us that the correction is already over and a new upswing is developing.
Trading Recommendation:
We are long EUR from 106.75. We placed our stop at 110.05 yesterday, but will lower it slightly to 109.85. If you are not long EUR already, buy at 110.50 with a stop at 109.85.
