Today's support and resistance levels:
S1: 122.02 R1: 122.92
S2: 121.83 R2: 123.44
S3: 121.56 R3: 123.98
Technical overview:
The decline from 124.50 has become much bigger than we anticipated and that is, of course, a concern, but, and that is of the utmost importance, support at 121.83 has not been broken. Only a break below 121.83 will invalidate our bullish call and tell us that the rally from 121.56 and a new zigzag combination lower towards 120.05 are to be expected. However, as long as important support stays intact, we might only be looking at a very deep wave ii of iii of 5, but if this is the case, we should soon see an impulsive rally above 123.44 and, more importantly, a break above 124.50, which will confirm that wave iii of 5 is indeed developing towards 133.54.
Trading recommendation:
We long EUR from 124.65 with a stop at 118.70. If you do not have long positions on EUR yet, buy at a break above 123.44 with the same stop.
