Today's Support and Resistance levels:
S1: 128.85 R1: 129.70
S2: 128.55 R2: 129.99
S3: 128.05 R3: 130.67
Technical overview:
We saw a move closer to important support at 126.43 yesterday, but no real follow-through, which means the tug of war between the bulls and the bears is still ongoing. We still favor the downside slightly over the upside, but as long as support at 126.43 has not been broken, we could still see a new rally above minor resistance at 129.99 and more importantly resistance at 130.67, which would call for one last rally higher towards 131.27. On the other side a break below important support at 126.43 will confirm that the bears has won the tug of war and indicate that wave 5 and (1) ended at 131.12 and wave (2) is developing for a correction back to at least 118.73.
Trading recommendation:
We have sold EUR at 128.70 with a stop at 130.00. If you have not short EUR yet, then sell at 131.00 with a stop at 132.00 or upon a break below 127.86 with a stop at 130.00.
