Today's support and resistance levels:
S1: 125.00 R1: 125.80
S2: 124.54 R2: 126.05
S3: 123.81 R3: 126.48
Technical overview:
We saw a decline slightly below our ideal target at 123.00 on Friday, but the following rally has been much more dynamic and higher than we expected. Therefore we have adjusted our short-term count slightly. We think that wave 4 will take more time and be deeper than what we have seen and therefore regard the rally from the 122.89 low as an X-wave and will expect a new decline to take place shortly. In the short term, we are looking for one last minor high to near the 125.90-126.05 area followed by a break below 125.00 and, more importantly, a break below 124.54 to confirm the next decline lower. For this count to stay valid we should not see a break above resistance at 126.95. Any break above 126.95 will indicate a new rally higher towards 127.70
Trading recommendation:
We will sell EUR at 125.75 or a break below 125.00 with a stop at 127.00
