Today's support and resistance levels:
S1: 124.39 R1: 125.24
S2: 123.80 R2: 125.78
S3: 123.43 R3: 126.05
Technical overview:
There was no time for one last minor rally higher yesterday, which means that wave i of 5 ended at 126.04 and wave ii of 5 currently is developing. The minimum we expect of wave ii is to reach the bottom of wave four of one lessor degree, which is at 123.80, but the decline in wave ii of 5 could be deeper. A correction towards the 50% target at 122.62 or even lower to the 61.8% target at 121.82 should not be ruled out, but the market seems to be very impatient and therefore we should not expect much of this correction. Once this correction is over, we should expect a very powerful rally higher towards at least 130.72, but more likely we will see it move higher towards 134.58.
Trading recommendation:
We will buy EUR at 123.90 or upon a break above 125.77 with a stop at 118.70 expecting an opportunity to move our stop upwards quickly.
