Today's support and resistance levels:
S1: 119.19 R1: 119.87
S2: 119.00 R2: 120.25
S3: 118.73 R3: 120.86
Technical overview:
Minor resistance at 120.25 protected the upside for the next downside pressure. Even though we think, that further downside action will be limited, we need some firm proof that wave ii of 5 is over. The first indication of the fact that wave ii of 5 is over will be a break above 120.25 and, more importantly, a break above 120.86. The latter break should accelerate the rally higher towards at least 124.50 and possibly even higher through 127.70. However, as long as minor resistance at 120.25 protects the upside, we must accept the continued small progress towards the downside, but we cannot accept a break below 118.73 as that would invalidate our bullish count and call for a continuation down to 117.05 in wave 4 before higher.
Trading recommendation:
We remain long for EUR from 124.65 with a stop at 118.70. If you do not have long positions on EUR, we recommend buying at a break above 120.25 with the same stop.
