Today's support and resistance levels:
S1: 118.56 R1: 119.17
S2: 118.16 R2: 119.65
S3: 117.71 R3: 120.12
Technical overview:
After a small correction from 120.12 down to 118.56, we are looking for the next rally higher towards the ideal target area between 121.18 and 121.34 where we expect the wave 3 to terminate and the wave 4 to begin. A break above 119.17 will be the first indication that we are headed higher towards 120.12 and 121.18, while a break above 119.42 will confirm the rally to 120.12 and higher. The risk is a break below 118.57 and, more importantly, a break below 117.63 as that will indicate, that we have already seen the top of the wave 3 and the wave 4 and heading for a correction towards at least 115.99 and, likely, even lower to 113.55.
Trading recommendation:
We are long EUR from 114.65 with a stop at 117.60 and take profit at 121.15.
