Today's support and resistance levels:
S1: 123.33 R1: 123.80
S2: 123.00 R2: 124.39
S3: 122.68 R3: 124.76
Technical overview:
The price action since yesterday has been very much like we expected. Once we broke below 125.21, there was no looking back and we saw a decent support at 123.79. After a small consolidation within the range of 123.80-124.39 we have seen the next move lower, which we believe will find good support at 123.00 of a correction towards 124.39. Resistance at 124.39 will ideally protect the upside for the next decline lower towards 122.70. Our long-term target for the ongoing wave 4 is at minimum 120.71 and more likely 117.24. At 117.24, the wave 4 have corrected 38.2% of wave 3 and at the same time this marks the bottom of wave 4 of one lessor degree. Two very common targets for the wave 4.
Trading recommendation:
We will short EUR from 126.15, move our stop lower to 124.00 and take profit at 123.15.
