Today's support and resistance levels:
S1: 116.45 R1: 117.65
S2: 115.97 R2: 118.20
S3: 115.36 R3: 118.87
Technical overview:
The 4-wave correction is developing nicely. The wave A of the simple zig-zag correction, that we are looking for, ended at 116.47 and was followed by a minimum length wave B. This wave B only corrected 38.2% of the wave A and ended at 118.20. With the waves A and B in place we can calculate the most likely ending point for the wave C, which is at 114.57, where the wave C is equal to the wave A in length. Normally, we expect the wave 4 to be complex in its structure, but as we had a big flat wave 2, we expect the wave 4 to be a simple zig-zag correction due to the Elliott Wave principle of alternation. Once the wave 4 is over, we are looking for the final move higher in the sequence from 94.10. The first target for the final wave is at 124.55, if we do see the wave 4 ending at 114.57.
Trading recommendation:
We are still looking for a EUR selling opportunity. Therefore, we will sell EUR at 117.50 or a break below 116.70 (one order done cancels the other). Stop will be placed at 118.25
