Today's Support and Resistance levels:
S1: 119.50 R1: 120.25
S2: 119.00 R2: 120.85
S3: 118.73 R3: 121.88
Technical overview:
The failure to break above resistance at 120.85 has preserved the downside pressure, but we think that a bottom is very close and we are looking for a break above resistance at 120.85 soon to confirm the next rally higher. A break above 120.85 will open up for a rally towards 121.88 and higher towards at least 124.50. Depending on the fact whether we have begun wave 5 higher or not, resistance at 124.50 should be broken without much trouble or if it protects the upside, our alternate triangle count comes into action for one last decline down to 121.59 before the final thrust out of the triangle towards the upside. That said, as long as resistance at 120.88 protects the upside we could see slightly more downside pressure, but at no point can a break below 118.73 be accepted, as a break below 118.73 will invalidate our bullish count and call for a decline closer to 117.05 before the next rally takes place.
Trading recommendation:
We are long EUR from 124.65 with a stop at 118.70. We will recommend buy EUR upon a break above 120.88 with the same stop.
