Today's support and resistance levels:
S1: 125.18 R1: 125.49
S2: 124.59 R2: 125.90
S3: 124.04 R3: 126.48
Technical overview:
Important short-term support at 124.54 protected the downside for a new move higher to 125.90, but it should be a question of time before support at 124.54 is broken and the downside pressure is building for a new decline towards 122.89 and lower towards 121.26 and finally the ideal wave 4 target at 117.28. In the short-term we expect resistance at 125.49 for a break below 124.90, which will confirm the next attach on important support at 124.54. Ideally, resistance at 125.90 will protect the upside for now, but only a break above 126.95 will invalidate our count and call for a new rally back towards 127.70 and higher.
Trading recommendation:
We short EUR from 125.70 with stop at 125.95. If you have not had short positions on EUR yet, then sell at 125.45 or a break below 124.90 (one order cancels the other) with the same stop.
