Today's support and resistance levels:
S1: 124.98 R1: 125.96
S2: 124.67 R2: 126.54
S3: 124.28 R3: 127.05
Technical overview:
As expected, the rally out of the ending diagonal became very powerful and the clear break above the possible triangle resistance at 124.50 has reinforced our stand that wave iii of 5 is developing. In the short term, we expect that minor support at 124.28 will protect the downside for the next rally higher towards 126.54 and likely higher towards 127.05. However, if we take a look at the long-term picture, the first possible target for wave 5 is at 131.60, but this rally could easily extend further.
Trading recommendation:
We long EUR from 124.65 and will move our stop up slightly to 119.10. If you do not have long positions on EUR already, then buy close to 124.28 with the same stop.
