Today's Support and Resistance levels:
S1: 117.58 R1: 118.33
S2: 117.01 R2: 118.71
S3: 116.46 R3: 119.40
Technical overview:
With the break below minor support at 118.20 yesterday, the short-term picture has become very cloudy. We are still rising within the channel, which is positive. However, the break below 118.20 made the possible wave iv of 5 overlap wave i of 5, which is not allowed under the Elliott Wave Principle. Therefore, we have two options at this point. The first is, that the correction from 120.12 still is ongoing, in some very complex wave 4 correction and we still need one more rally higher once completes. Secondly, we could have seen the top of wave 3 already at 120.71 (a little short from the ideal target at 121.28). If we already have seen the top of wave 3 we are now looking at wave 4, which should decline down to the bottom of the wave four of one lesser degree, which means a decline to 113.54.
Trading recommendation:
We were stopped out of our long EUR-position at 118.15. As the picture is too cloudy at this point, we will stay neutral and wait for better opportunities.
