Today's support and resistance levels:
S1: 124.52 R1: 125.98
S2: 124.03 R2: 126,55
S3: 123.43 R3: 126.95
Technical overview:
Our count has pretty much worked out as expected. Yesterday we did see minor support at 125.50 protect the downside for one last rally higher. This last rally went a little higher than the expected 126.78 (the high was at 126.95). The decline from 126.95 has an impulsive character, which tells us that the downside is where our main focus has to be at the moment. Wave 4 is unfolding and correcting the previous wave 3. The ideal target for wave 4 is 117.24, which also marks the bottom of wave 4 of one lessor degree. In the short term, we are looking for minor resistance at 125.64 to protect the upside for a break below 124.52, that will confirm the next decline to 123.43 and 122.83.
Trading recommendation:
We short EUR from 126.15 and will move our stop down to 127.00.
