Today's support and resistance levels:
S1: 127.05 R1: 127.62
S2: 126.43 R2: 1.2797
S3: 125.89 R3: 128.54
Technical overview:
We still favor the triangle scenario as long as support at 126.43 and, more importantly, support at 124.87 protect the downside. Ideally, the c-leg of the triangle is at its terminating point and we will see a break above minor resistance at 128.09 soon, which will confirm that the d-leg of the triangle is unfolding for a move higher towards 129.89. Only a clear break below support at 126.43 and acceleration of the price move towards the downside will indicate that we have already seen the top of wave 5 and (1) at 131.12 and that wave (2) is unfolding towards at least 118.73.
Trading recommendation:
As we do favor the triangle scenario, we will buy EUR at 127.30 with a low risk stop at 126.40.
