Today's Support and Resistance levels:
S1:127.86 R1: 128.46
S2: 127.14 R2: 128.96
S3: 126.43 R3: 129.73
Technical overview:
As long as support at 124.87 protects the downside we are looking for one last rally to a new high slightly above 131.12. However, it should be noted that we are in the absolute final stages of the rally which started at 94.10 and once this rally completes we expect a big correction towards at least the 118.73 - 119.10 area. Even though we expect one more rally higher, the possible odds that wave 5 already is in place is so high, that we are more focused on the downside risk. A break below 127.15 and, more importantly, a break below 124.87 will increase the downside pressure and indicate, that wave 5 did indeed end at 131.12.
Trading recommendation:
As we think the major risk currently is towards the downside, we are looking for EUR selling opportunities. We will sell EUR at 131.00 or upon a break below 127.40 and will place our stop at 132.00. If we see a break below 127.40 first we will move our stop lower quickly.
